Ronaldo confronts lawsuit about NFT crypto ads


Sports and Cryptocurrency Investment

broken image

Portugal footballer Cristiano Ronaldo is confronting a class action lawsuit in the US
over his endorsement of Binance, the largest cryptocurrency exchange in the
world. What happens next as Ronaldo confronts lawsuit about NFT crypto ads?

The plaintiffs maintain his support led them to make loss-making investments.

They are looking for damages of sum beyond $1bn (£790m).

The BBC has made contact with equally Ronaldo's management company and Binance for remark.

InNovember 2022, Binance announced its first CR& collection of non-fungible
tokens(NFTs) in company with Ronaldo, which the footballer said would return
fans for all the years of support.

NFTsare non physical assets that can be bought and sold, but which have no
real-world form of their own – simply put they only exist digitally. Normally,
they are used to spot ownership of something, such as a picture or video

CR7allude to Ronaldo's identifications and shirt number, and is used as trademark
in a range of products, from footwear to perfumes, that have assisted to make
him one of the richest athletes on earth..

Insidea social media video declaring the partnership, Ronaldo told intending
investors that - we are going to change the NFT game and take football to the
next level – he said.

The least prized NFT from the compilationwas priced at $77 when it went on sale in November 2022 - but a year later, it
was priced at about $1.

The plaintiffs claims thatRonaldo's encouragement of Binance led to a 500% boost in searches for the
crypto exchange, which is registered in the Cayman Islands.

They also claim it led people touse the firm to invest in what they refer to as unregistered securities - such
as Binance's BNB cryptocurrency.

As reported by the US Securitiesand Exchanges Commission (SEC), these assets can be measured as securities -
and so celebrities promoting them must follow US law.

SEC chair Gary Gensler formerlysaid celebrities must reveal to the public from whom and how much you are
getting paid to endorse investment in securities.

While celebrities promoteinvestment chances, including crypto-asset securities, investors should be cautious
to research if the investments are right for them, and they should know why
celebrities are making those promotions, he said.

The plaintiffs claim Ronaldoshould have disclosed how much he was being paid, but did not.

Nigel Green, boss of consultancyfirm DeVere Group, said the troubles at the heart of the case went wider than
just one footballer.

It is critical to distinguish thatfaulting Ronaldo only over reduces a compound issue, - he said.

As an alternative, awarenessshould also be directed towards world regulators who have been slow to ascertain
obvious guidelines for this growing financial setting.

Potential plans

Ronaldo and Binance seem to have strategyto work together again in the future, with a current social media post from the
footballer saying they are thinking something up.