Cristiano Ronaldo faces lawsuit over Binance promotion and unregistered securities.

Football star Cristiano Ronaldo is facing a lawsuit related to his promotion of Binance and allegations of involvement in unregistered securities. The legal action raises questions about celebrity endorsements in the crypto space and regulatory compliance within the industry.

Cristiano Ronaldo faces lawsuit over Binance promotion and unregistered securities.

The famous soccer player Cristiano Ronaldo Faces Lawsuit over allegations of promoting unregistered securities in collaboration with crypto exchange Binance. The lawsuit was filed in a Florida District Court on November 27th. Ronaldo had entered a multi-year partnership with Binance in mid-2022, where he promoted non-fungible tokens (NFTs) on the platform. However, the plaintiffs claim that Ronaldo’s promotion not only led users to invest in his NFTs but also to engage with other Binance offerings, including investments in what they believe are unregistered securities.

The Cristiano Ronaldo Faces Lawsuit highlights and significant influence, with 850 million followers on various social media platforms, which reportedly boosted Binance’s popularity by a 500% increase in searches for the exchange following his promotion.

The complaint argues that Ronaldo, an investment novice, lacked the basis to promote a financial product, especially considering the legal issues surrounding Binance. The plaintiffs also point out that Ronaldo failed to disclose any compensation received for promoting cryptocurrencies, as mandated by the Securities and Exchange Commission (SEC) guidelines.

The plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are seeking damages and coverage of legal fees in the lawsuit. Meanwhile, Binance and its founder, Changpeng Zhao, deal with their legal issues. Binance recently admitted guilt and agreed to a $4.3 billion settlement with the US for charges related to money laundering and operating an unregistered money-transmitting business.

Zhao has stepped down as CEO and may face up to 18 months in prison, although some legal experts speculate he could face up to 10 years. The SEC has also filed a lawsuit against Binance, alleging the sale of unregistered securities and investigating potential misappropriation of customer funds.

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