Cristiano Ronaldo, the renowned footballer, is facing a lawsuit for promoting Binance, a cryptocurrency exchange platform. The lawsuit alleges that Ronaldo, along with other influencers, was involved in the promotion of unregistered securities.
Binance, the world’s largest centralized, web-based crypto-products platform, has been sued by the U.S. Commodity Futures Trading Commission (CFTC) for selling unregistered crypto-related products. The lawsuit claims that Binance knowingly violated federal law by offering these products to U.S. customers.
The lawsuit also implicates Changpeng Zhao, the founder of Binance, alleging that under his leadership, the company directed its employees to spoof their locations through the use of virtual private networks. The CFTC is charging Binance with several violations, including offering futures transactions, failing to register as a futures commissions merchant, and having a poor anti-evasion program.
Cristiano Ronaldo Becomes the Latest Victim of the US Crypto Witch Hunt
Ronaldo, along with other influencers and an NBA star, is being sued for their role in promoting these unregistered securities. The lawsuit alleges that Binance paid these influencers for the unlawful promotion of its services. The lawsuit is pursuing compensation for a worldwide group, a national group, and subclasses in Florida and California. It was filed by the Moskowitz Law Firm and Boies Schiller Flexner in the Southern District of Florida.
This case highlights the potential legal risks faced by celebrities and influencers who promote cryptocurrencies and related products. It could further disincentivize celebrity brand ambassadors and the populist push by influencers to boost cryptocurrencies. The news of the lawsuit sent ripples through the crypto markets, driving down the price of Bitcoin and Binance’s exchange token BNB. However, the market has since rebounded, recovering most of the loss.
This lawsuit represents a significant development in the ongoing scrutiny of cryptocurrency exchanges and the role of influencers in promoting their products. It underscores the need for the crypto community to stand together against regulatory pressure from the US Government.