facing class action lawsuit

World-famous soccer player Cristiano Ronaldo is facing a class action lawsuit in the United States for his involvement in promoting the cryptocurrency exchange Binance.

According to court documents dated July 27, the plaintiffs allege that Ronaldo facilitated, supported, and actively participated in the offering and sale of unregistered securities offered by Binance. The plaintiffs who actually purchased unregistered securities on Binance are filing this lawsuit.

Last June, the company announced that it had signed a deal with Ronaldo to release an NFT (non-fungible token) collection. It was also explained that the contract period would be for multiple years and that there would be a global promotion that would invite Ronaldo’s fans into the world of Web3.

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In court documents, the plaintiffs cited cases in which Binance was sued by the U.S. Securities and Exchange Commission (SEC) and other parties, or reached settlements with the U.S. Department of Justice, etc., and cited the above-mentioned agreements. It is pointed out that under this agreement, Ronaldo made posts related to Binance on social media, promoted his NFTs, and conducted commercial advertising.

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It also claims that Ronaldo’s activities helped Binance attract American investors. Some U.S. investors have said that Ronaldo’s promotion prompted them to sign up for Binance and buy crypto-related securities.

The plaintiffs alleged that in exchange for this publicity, Ronaldo received a number of compensations, including digital assets.

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Involved in the sale of securities

Last week, Binance settled with the US Department of Justice for failing to comply with US law, but the SEC was not included in the settlement. The company is currently in a dispute with the SEC, which has claimed that stocks such as BNB are securities and pointed out that staking services constitute the provision of securities.

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The plaintiff points out that the promotion between Ronaldo and Binance was highly successful. He explains that after his NFT was announced, NFT-related searches using the keyword “Binance” increased by 500%.

He then argues that by accessing and purchasing NFTs on Binance, and seeking related benefits, users often invest in Binance through other means. After registering, users will also be able to purchase BNB and use staking services on Binance, he said.

Furthermore, given Mr. Ronaldo’s investment experience and available resources, he knew or should have known that Binance might be selling unregistered securities or that he might be involved in fraud. It also claims that it was.

Based on these claims, the plaintiffs argued that Ronaldo’s advertising was misleading and violated the law.

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