SOCCER
Cristiano Ronaldo hit with billion-dollar cryptocurrency lawsuit
A class action lawsuit in the US claims that plaintiffs were misled by CR7′s promotion of NFT products on Binance.
Cristiano Ronaldo is the subject of a huge class action lawsuit in relation to his promotion of cryptocurrency exchange Binance.
The Portuguese soccer star entered in a partnership with Binance last year, lending his name to the ‘CR7 Collection’ of non-fungible tokens (NFTs). As part of the promotion Ronaldo said that the NFTs would reward his fans for “all the years of support”.
However a group of plaintiffs in the US are now claiming that Ronaldo’s endorsement pushed them to make unwise investment decisions. The group is seeking damages in excess of $1 billion.
Why is Cristiano Ronaldo getting sued?
Last November Binance announced the launch of an “exclusive, multi-year partnership” with Ronaldo that was explicitly designed to introduce his fans to the world of NFTs.
“It was important to me that we created something memorable and unique for my fans as they are such a big part of my success,” a statement from Ronaldo read.
“With Binance, I was able to make something that not only captures the passion of the game but rewards fans for all the years of support.”
However a group of investors are claiming that they were misled by CR7′s promotion and were led to loss-making decisions. A Florida district court has agreed to hear their case.
A filing to the court, on behalf of the plaintiffs, claims that Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance.”
The NFTs bearing Ronaldo’s approval are virtual assets generated and shared on blockchain networks, but have no ‘real-world’ form. A number of major soccer clubs have dabbled in NFTs and the likes of Arsenal, Barcelona and AC Milan have partnered with controversial “fan token” creators Socios.