Cristiano Ronaldo’s recent urging of digital asset firm Binance has prompted crypto investors to file a lawsuit.
Recently, Cristiano Ronaldo, a Portuguese-origin football star, sparked a commotion in the cryptocurrency community with his support for Binance, the leading global digital asset exchange.
Numerous crypto traders and investors in the broader crypto markets attributed their losses to Ronaldo’s promotion of Binance.
Furthermore, it was claimed that the football star’s recent promotions and multi-year partnership with Binance to promote his NFT collections contributed to a rise in investor losses associated with the sale of unregistered securities.
Conversely, Ronaldo was the subject of a $1 billion class-action lawsuit.
Moreover, recent reports indicate that on Monday, November 27, the lawsuit was formally lodged in a Florida District Court, alleging that the football star actively engaged in endeavors associated with the sale of unregistered securities.
Binance and Ronaldo entered into a partnership around mid-2022, with Ronaldo endorsing and facilitating the sale and promotion of his own NFTs; at least three of these collections were facilitated on Binance.
An In-Depth Analysis of Ronaldo’s Lawsuit
The lawsuit primarily alludes to the extraordinary influence of Ronaldo, which appears to have been critical in elevating Binance to new heights.
Intriguingly, the complaint asserts that the NFT sales for the football star’s collection were extraordinarily successful in stimulating the exchange, as evidenced by a 500% surge in total Binance searches in the week that followed the initial sale.
Furthermore, the accuser asserts that Ronaldo, given his substantial investment expertise and access to renowned investment advisors, should have been aware, or at the very least, should have been informed, regarding Binance’s involvement in the unregistered sale of cryptocurrency securities.
In the meantime, plaintiffs, including Gordon Lewis, Michael Sizemore, and Mikey Vongdara, who suffered losses due to Ronaldo’s endorsement of Binance, are now pursuing monetary compensation to recoup their legal costs.
What Does The Future Hold For Binance?
The world’s largest cryptocurrency exchange seems to be facing difficulties due to several lawsuits the company has seen.
Before the lawsuit mentioned above, the platform had recently faced allegations of disregarding appropriate anti-money laundering protocols, which led to Changpeng Zhao’s resignation as the organization’s CEO.
Moreover, the company consented to a settlement payment of $4.3 billion.
The company observed substantial outflows in the wake of Binance’s money laundering scandal.
As the organization faces another legal dispute, adverse sentiments appear to accumulate in the cryptocurrency markets.
