Cristiano Ronaldo, the star of Portuguese soccer, is facing a class-action lawsuit that aims to recover at least $1 billion from him for his part in promoting cryptocurrency-related “non-fungible tokens,” or NFTs, that were released by the troubled cryptocurrency exchange Binance.
The lawsuit claims that Ronaldo’s endorsement of Binance was “deceptive and unlawful,” and it was filed on Monday in federal court in the Southern District of Florida. The plaintiffs contend that Binance’s affiliation with well-known individuals like Ronaldo propelled them into costly and unsafe investments.
“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.
Ahead of the 2022 World Cup, Ronaldo debuted his first NFT “CR7” collection with Binance in November of last year. The NFTs, which ranged in price from roughly $77 to $10,000, included seven animated figurines that portrayed Ronaldo at significant points in his life, such as bicycle-kick goals and his early years in Portugal.
The lawsuit filed on Monday claims that the publicity surrounding Ronaldo’s association with Binance was “incredibly successful,” citing a 500% spike in internet searches for “Binance” following the news of the soccer player’s NFTs. According to the lawsuit, the premium-level NFTs in the collection sold out in the first week.
The claim also alleges that Ronaldo should’ve disclosed how much Binance had paid him for the collaboration. As previously mentioned by the U.S. Securities and Exchange Commission, federal law mandates that celebrities reveal their compensation to the public for endorsing securities, including cryptocurrency assets.
NFTs are regular digital photos that have been uploaded to a cryptocurrency blockchain along with a version number, which is what gives them the appearance of “unique” collectibles. NFTs saw a quick surge, but they have since essentially crashed in value as the crypto industry has been marred by scandals and market meltdowns.
