Football superstar Cristiano Ronaldo is facing a proposed class-action lawsuit in the US after plaintiffs claim they incurred financial losses from his promotion of the now-troubled crypto exchange Binance, according to reports.
Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance”, said a filing to the US district court on November 27 in Florida, according to cointelegraph.com.
In June last year, Binance signed a partnership with Cristiano Ronaldo for the promotion of non-fungible tokens (NFTs).
According to the complaint, as per filing, users who signed up for Ronaldo’s NFT’s were more likely to use Binance for other purposes, such as putting their money in unregistered securities.
As part of the multi-year agreement, Ronaldo and Binance would create a series of NFT collections for sale on the company’s platform.
An NFT is a digital asset that exists on a blockchain, a record of transactions kept on networked computers, and the blockchain serves as a public ledger, allowing anyone to verify the NFT’s authenticity and check who owns it.
According to the lawsuit, Ronaldo knew or should have know about “Binance selling unregistered crypto securities” as he has “investment experience and vase resources to obtain outside advisers”, according to cointelegraph.com.
It also said Ronaldo also did not follow the US SEC guideline warning celebrities of the need to disclose payments received for promoting cyptos.
The class-action lawsuit plaintiffs are Michael Sizemore, Mikey Vongdara and Gordon Lewis, who seek damages and funds to cover legal fees, according to cointelegraph.com.
Comments
0 comment