Cristiano Ronaldo Faces $1 Billion Lawsuit Over Cryptocurrency Promotion

Portuguese soccer star Cristiano Ronaldo is facing a class-action lawsuit seeking at least $1 billion in damages for his role in promoting cryptocurrency-related "non-fungible tokens," or NFTs, issued by the beleaguered cryptocurrency exchange Binance to millions of his fans.

The lawsuit, filed in federal court in the Southern District of Florida Monday, alleges that Ronaldo's promotion of Binance was "deceptive and unlawful." Binance's partnership with high-profile figures like Ronaldo, the plaintiffs claim, led them into costly and unsafe investments.

Under the marketing partnership, Ronaldo encouraged millions of his fans and supporters to invest with Binance, even though many of them were unfamiliar with cryptocurrencies or the platform, the lawsuit alleges. As a result of his endorsement, his fans came away with the impression that the investments were safe — such was the case with the plaintiffs in the lawsuit, who bought products sold on Binance after seeing Ronaldo's endorsements, it claims.

Ultimately, they lost money, the lawsuit states.

"Evidence now reveals that Binance's fraud was only able to reach such heights through the offer and sale of unregistered securities, with the willing help and assistance of some of the wealthiest, powerful and recognized organizations and celebrities across the globe — just like Defendant Ronaldo," the suit reads.

Representatives for Ronaldo declined to comment Thursday. Binance, the world's largest cryptocurrency exchange, did not immediately return requests for statement from The Associated Press.

Ronaldo isn't the first celebrity to be sued over their involvement with the crypto world. Last year, NFL quarterback Tom Brady, supermodel Gisele Bundchen and comedian Larry David were among a star-studded list of people accused of defrauding investors who lost money in the cryptocurrency exchange's collapse. 

The stars had appeared in a Super Bowl ad and other promotions for FTX. The suit argued that the celebrities' status made them culpable for promoting FTX's failed business model.

Ronaldo NFT collection

Ronaldo launched his inaugural NFT "CR7" collection with Binance in November of last year, ahead of the 2022 World Cup. The NFTs — which had starting prices ranging from the equivalent of about $77 to $10,000 — featured seven animated statues depicting Ronaldo from iconic moments in his life, from bicycle-kick goals to his childhood in Portugal.

Monday's suit says that the promotional efforts of Ronaldo's Binance partnership were "incredibly successful" — alleging a 500% increase in online searches using the keyword "Binance" after the soccer star's NFTs was announced. The collection's premium-level NFTs sold out within the first week, the suit claims.

The lawsuit also claims that Ronaldo should have disclosed the amount he received from Binance for their partnership. The U.S. Securities and Exchange Commission previously mentioned that federal law mandates celebrities to publicly disclose their earnings from promoting securities, including cryptocurrency assets.

The Rise and Fall of NFTs

NFTs are digital images with a unique version number that are stored on a cryptocurrency blockchain. This process aims to make them collectible and distinct. Although NFTs experienced a short-lived boom, their value has significantly declined due to scandals and market downturns in the crypto industry.

Last summer, Binance faced allegations of operating as an unregistered securities exchange and violating multiple U.S. securities laws, resulting in a lawsuit from regulators. The cryptocurrency exchange recently agreed to pay a settlement of approximately $4 billion, and its CEO, Changpeng Zhao, stepped down and pleaded guilty to a felony related to his failure to prevent money laundering on the platform.

Ronaldo is a renowned and affluent athlete, recognized worldwide. He has represented Portugal's national team and played for prestigious clubs such as Real Madrid in Spain, Juventus in Italy, and Manchester United in England. Currently, he is a member of the professional team Al Nassr in Saudi Arabia.

Ronaldo Continues to Promote Binance

Football superstar Cristiano Ronaldo has once again shown his support for the cryptocurrency exchange Binance. Ronaldo, who has been an ambassador for Binance since 2019, has been actively promoting the platform on his official website and social media accounts.

In his latest move, Ronaldo took to X (formerly known as Twitter) to share a Binance video and hint at an upcoming collaboration with the crypto exchange. He wrote, "Cooking something up" with Binance on Tuesday, leaving his fans excited and curious about what's to come.