In a surprising turn of events, football sensation Cristiano Ronaldo is now entangled in a class-action lawsuit filed by aggrieved plaintiffs who claim substantial losses due to his association with the legally troubled cryptocurrency exchange, Binance.
Ronaldo inked a sponsorship deal with Binance in June 2022, even after the Financial Conduct Authority had labeled the exchange a ‘significant risk’ to consumers.
The lawsuit, filed on Tuesday in the United States District Court, Southern District of Florida, alleges that Ronaldo actively participated in the promotion and sale of unregistered securities in collaboration with Binance.
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The claimants argue that Ronaldo’s involvement in endorsing the exchange led to losses exceeding a staggering $1 billion, linking his support to a subsequent 500 percent surge in searches for Binance following the release of its non-fungible tokens (NFTs).
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As the controversy unfolds, questions arise about the responsibility of celebrities in endorsing investment opportunities, particularly in the volatile realm of crypto-asset securities. Gary Gensler, Chair of the U.S.
Securities and Exchange Commission (SEC), has previously underscored the crucial need for public disclosure by celebrities endorsing financial ventures.
He urged investors to exercise caution, emphasizing the importance of comprehending the motivations behind such endorsements and conducting thorough research before making investment decisions.
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The lawsuit against Ronaldo sheds light on the evolving intersection of sports, celebrity endorsements, and the burgeoning cryptocurrency market, prompting a broader discussion about the ethical responsibilities of high-profile individuals in the financial realm.
