Cristiano Ronaldo Faces Lawsuit for Promoting Binance Amid Compliance Concerns
In Brief
Renowned football star Cristiano Ronaldo has been sued for promoting the cryptocurrency exchange Binance.
Filed in a Florida District Court, the lawsuit alleges that Ronaldo’s promotion led to losses for the plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, due to Binance’s lack of proper anti-money laundering measures and other compliance issues.
Ronaldo, having partnered with Binance in mid-2022 to promote his NFT series, now faces accusations of assisting Binance in offering and selling unregistered securities. The lawsuit claims that users signing up for the NFT collection were likely to use the exchange for other purposes, including buying these unregistered securities.
It also asserts that Ronaldo should have been aware of Binance’s activities involving unregistered crypto securities. It also cites the SEC’s warning to celebrities about disclosing payments for crypto promotions, which the plaintiffs claim Ronaldo failed to do.
Wider Implications for Binance‘ Services
This legal challenge is part of a series of issues facing Binance, including a recent order to pay $4.3 billion in settlements to US authorities. It highlights the risks celebrities face when endorsing platforms without full compliance checks.
The Philippine SEC declared that Binance lacks authorization to sell or offer securities in the Philippines, underscoring the platform’s challenges with compliance. Philippine SEC warned against dealing with unregistered platforms like Binance, emphasizing potential criminal liabilities for promoters and endorsers.
Cristiano Ronaldo’s lawsuit for promoting Binance underscores the growing scrutiny of celebrity endorsements in the crypto industry, especially regarding compliance with financial regulations. As legal and regulatory challenges mount for Binance, the case serves as a cautionary tale for both the crypto industry and its promoters.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
