Cristiano-Ronaldo-Swept-into-$1B-Lawsuit-for-Binance-AdsCristiano Ronaldo confronts a $1 billion lawsuit

In a recent development, football icon Cristiano Ronaldo is at the center of a $1 billion lawsuit. Plaintiffs allege his endorsement of cryptocurrency exchange Binance led them to incur significant investment losses.

The legal action asserts that Ronaldo's promotion of Binance resulted in a "500% increase in searches" for the platform and prompted investors to engage in what the claimants term as "unregistered securities" investments, specifically Binance's BNB cryptocurrency.

The lawsuit alleges that Ronaldo failed to disclose the compensation he received for endorsing Binance, which is a violation of US Securities and Exchange Commission (SEC) regulations. The SEC emphasizes the importance of celebrities disclosing payment details when endorsing investment opportunities.

The legal action, filed as a class action suit, comes amid a broader crackdown on celebrities and entities promoting cryptocurrency-related ventures without adequate disclosures. Nigel Green, CEO of DeVere Group, suggests that the responsibility extends beyond Ronaldo. He brought attention to the slow pace of global regulators in establishing clear guidelines.

The lawsuit emerged shortly after the US Justice Department directed Binance to pay $4.3 billion in penalties and forfeitures for allegedly aiding users in circumventing global sanctions and facilitating illicit financial activities.

The legal action against Ronaldo coincides with similar class action lawsuits targeting Major League Baseball, Formula 1, and Mercedes-Benz over their involvement in promoting the failed crypto-exchange FTX. Despite the mounting legal challenges, both Ronaldo and Binance have yet to respond to inquiries from the BBC, and they are reported to be planning future collaborations.