(New York) Soccer star Cristiano Ronaldo is the subject of a class action lawsuit seeking at least US$1 billion in damages for his role in promoting cryptocurrency-related “non-fungible tokens” or JNFs, issued by the Binance company.
The lawsuit filed Monday in federal court for the Southern District of Florida alleges that Ronaldo’s promotion of Binance was “deceptive and unlawful.” The plaintiffs claim that Binance’s partnership with high-profile figures like Ronaldo led them to costly and dangerous investments.
“Evidence now reveals that Binance fraud was only able to reach such heights through the offering and sale of unregistered securities, with the willing aid and assistance of some of the world’s most influential organizations and celebrities. richest, most powerful and most recognized throughout the world, just like the accused Ronaldo,” reads the dispute.
Representatives for Ronaldo declined to comment on Thursday. Binance, the world’s largest cryptocurrency exchange, did not immediately respond to requests from The Associated Press for comment on the matter.
Ronaldo launched his first JNF collection “CR7” with Binance in November last year, ahead of the 2022 World Cup. The JNFs – whose starting prices ranged from the equivalent of around $77 to $10,000 – featured seven animated statues showing Ronaldo at iconic moments in his life, from goals scored using the “bicycle” technique to his childhood in Portugal.
The suit says promotional efforts for Ronaldo’s Binance partnership were “incredibly successful” – alleging a 500% increase in online searches using the keyword “Binance” following the soccer celebrity’s JNF announcement. The premium JNFs in the collection sold out within the first week, the suit claims.
The suit also alleges that Ronaldo should have disclosed how much Binance paid him for the partnership. The U.S. Securities and Exchange Commission has previously noted that federal law requires celebrities to publicly disclose how much they are paid to promote securities, including cryptoassets.
JNFs are ordinary digital images with a version number attached that have been added to a cryptocurrency blockchain, a process designed to make them “unique” collectibles. JNFs experienced a brief boom, but their value has since largely collapsed as the cryptocurrency industry has been marred by scandals and market crashes.
Over the summer, Binance was accused of operating as an unregistered securities exchange and violating a series of U.S. securities laws in a lawsuit filed by regulators. The crypto exchange agreed last week to pay a settlement of around US$4 billion and its founder Changpeng Zhao resigned as CEO and pleaded guilty to a crime related to his failure to prevent money laundering on the platform.
The class action filed this week against Ronaldo is not the first time a celebrity has faced litigation over cryptocurrency promotions. Last year, for example, numerous Hollywood and sports stars – including Larry David and Tom Brady – were named as defendants in a class-action lawsuit against FTX, which was the second-largest cryptocurrency exchange before its collapse in November 2022. The suit argued that the celebrities’ status made them guilty of promoting FTX’s failed business model.
Ronaldo is one of the most recognizable and richest athletes in the world. He manages the national team of Portugal, his home country, and has played for Spanish team Real Madrid, Italian club Juventus and Manchester United in England. He now plays for the Saudi professional team Al Nassr.
Ronaldo continued to promote Binance on his official website and social media platforms. Most recently, on X, Ronaldo reposted a video from Binance and wrote that he was “planning something” with the cryptocurrency exchange on Tuesday.