Portuguese football icon Cristiano Ronaldo is currently embroiled in a lawsuit regarding his endorsement of Binance, the largest cryptocurrency exchange globally.
The plaintiffs are seeking damages exceeding $1 billion (£790 million).
The complaint alleges that Ronaldo actively participated in the offering and sale of unregistered securities in collaboration with Binance.
In 2022, the footballer struck a partnership with Binance to promote his non-fungible tokens (NFTs), which became linked with the exchange.
It’s claimed that individuals who acquired Ronaldo’s NFTs are more inclined to utilize the exchange for various purposes, including investing in unregistered securities.
The lawsuit contends that given Ronaldo’s investment background and resources, he should have been aware of Binance’s sale of unregistered cryptocurrency securities.
Former Binance CEO Changpeng Zhao has pleaded guilty to contributing to the failure of the global cryptocurrency exchange to uphold an effective anti-money laundering program.
Binance faced accusations of violating anti-money laundering and sanctions regulations, as well as neglecting to report suspicious transactions involving organizations designated as terrorist groups by the US, such as Hamas, al Qaeda, and the Islamic State of Iraq and Syria.
In a plea agreement, Binance agreed to a payment exceeding $4.3 billion, while Zhao consented to a $150 million penalty to the US Commodity Futures Trading Commission.
Zhao could potentially face up to 18 months in prison, and a US federal judge has decreed that he cannot depart from the United States until his sentencing hearing scheduled for February.
