Michael Sizemore, Mikey Vongdara, and Gordon Lewis believe that Ronaldo helped promote financial products on Binance without following the rules.
Famous football player Cristiano Ronaldo is in trouble with the law again. He is being accused of promoting a cryptocurrency exchange called Binance in a way that is not allowed. The legal battle just started this week. Ronaldo is being sued in Florida for telling people to invest in illegal Binance securities, which caused them to lose a lot of money.
The people suing, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, say that Ronaldo was involved in promoting financial products on Binance. They think these products should have been approved by regulators. They mention Ronaldo promoting his NFT collection, the BNB token, and yield programs on Binance specifically.
In 2022, Binance and Ronaldo agreed to work together to promote some of his collections as NFTs. The first set of items was released in November 2022. It was divided into four categories: normal, rare, super rare, and super super rare. The new set called Forever CR7 was released in July this year. It has 29,000 digital collectibles that show important moments from the famous soccer player Cristiano Ronaldo’s career, like his awards. These collections were really popular all over the world.
They think Ronaldo helped Binance reach more people and made more people interested in unregistered securities by using his fame and social media followers. They also pointed out that the number of searches for Binance increased by 500% just a few days after he released his NFT collection on the crypto exchange.
The document said:
“Ronaldo promoted Binance and encouraged his followers to invest in it, which is against the law. ”
In addition, the lawsuit claims that Ronaldo either deliberately or carelessly ignored the SEC’s rules about disclosing his Binance sponsorship deal. The people suing say the football star should have seen problems with the cryptocurrency linked to his business deal because he is an experienced investor.
The Crypto Company is facing more problems.
The lawsuit is happening while Binance is already dealing with a lot of problems. The government made a deal with Binance to pay $4. 3 billion for breaking rules about illegal money. Binance’s boss, Changpeng Zhao, recently quit because he admitted to laundering money. The decision on the case may not be made until early 2024. No one knows what will happen before the final court decision is made.
Besides the problems mentioned earlier, Binance is still fighting a lawsuit from the SEC. The lawsuit says Binance sold securities illegally. The agency is looking more into how customers’ money might have been used improperly on the platform.
Binance is facing legal problems, and now Cristiano Ronaldo’s lawsuit adds more problems for the company. The lawsuit wants money and payment for the legal costs caused by the losses the people experienced from investments promoted by the football star.