Cristiano Ronaldo faces over $1 billion in class action lawsuit for promoting cryptocurrency exchange

According to the British Broadcasting Corporation (BBC), football player Cristiano Ronaldo was hit with a class action lawsuit in the United States for promoting Binance, the world's largest cryptocurrency exchange, demanding compensation of more than 10 billion U.S. dollars (approximately RMB 71.4 billion). The news comes from a report on this site on December 3rd

The lawsuit was filed in a Florida court on November 27th.The plaintiffs claimed that their investment losses were caused by Ronaldo's promotion.

In November 2022, Binance announced that it would cooperate with Ronaldo to launch the first "CR7" series of non-fungible tokens (NFTs), thanking fans for their "support over the years", "CR7" Refers to Ronaldo's initials and jersey number .

In the official video announcing the partnership, Ronaldo told potential investors: "We will change the NFT game and take football to the next level." It is understood that C Luo’s cumulative number of fans across all social media reaches 850 million.

The cheapest NFT in the "CR7" series sells for $77, and the most expensive can reach $10,000, but is only worth $1 after 1 year (cheapest version).

The claimants allege that Ronaldo's promotion of Binance led to a 500% increase in searches for the cryptocurrency exchange and also led to people investing in so-called "unregistered securities" - Such as Binance’s BNB cryptocurrency.

Under the rules of the U.S. Securities and Exchange Commission (SEC), these assets can be considered securities - so celebrity endorsements must comply with U.S. law.

SEC Chairman Gary Gensler previously stated that celebrities must "disclose to the public the source and amount of remuneration to promote securities investment"

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