The class action plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are seeking damages and legal fees. According to the lawsuit, Ronaldo coordinated with Binance to promote, assist, and actively participate in the offering and sale of unregistered securities.
In 2022, Binance and Ronaldo will start collaborating to launch their own non-fungible token (NFT) collection
The plaintiffs said Ronaldo enticed and encouraged millions of fans to invest in unregistered securities of Binance. Additionally, users who registered Ronaldo's NFTs could use Binance for other purposes, such as investing in Binance Coin (BNB) and other cryptocurrency-related programs.
Ronaldo was instrumental in Binance’s rise to fame, thanks to his massive influence and hundreds of millions of social media followers. The lawsuit claims that Ronaldo caused searches for Binance to increase 500% in the week following the initial sale. The plaintiffs allege that Ronaldo knew or should have known about Binance’s sale of unregistered crypto securities, given his investment experience and the resources available to him for advice.
The US Securities and Exchange Commission (SEC) has warned celebrities about the need to disclose payments they receive from cryptocurrency promotions, something the complaint alleges Ronaldo failed to do.
On November 21, Binance founder Changpeng Zhao (CZ) resigned as CEO and pleaded guilty to violating anti-money laundering laws and operating an unregistered exchange. Binance had to pay $4.3 billion in restitution and agreed to be supervised by the US government for 5 years. The former CEO is currently facing 18 months in prison. The SEC also accused Binance of selling unregistered securities and is investigating whether Binance misappropriated customer funds.
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