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Cristiano Ronaldo to be sued for US$1 billion for Binance endorsement

Cristiano Ronaldo to be sued for US$1 billion for Binance endorsement

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Global football superstar Cristiano Ronaldo is reportedly facing a class action lawsuit over his promotion of cryptocurrency company Binance.

The lawsuit will take place in the U.S. with the plaintiffs seeking damages of over US$1 billion, as reported by BBC. The plaintiffs have also reportedly said that Ronaldo’s endorsement led to a 500% increase in searches for Binance and led them to make a loss-making investment.

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As the company allegedly helps its customers invest in unregistered securities, these assets can still be considered securities, according to the US Securities and Exchanges Commission (SEC).

This means that celebrities endorsing them must follow US law which includes disclosing to the public the amount they are getting paid to promote the investment in securities as well as who is paying them, the report added.

Binance has also been under scrutiny by the US Justice Department after the firm was asked to pay US$4.3 billion in penalties and forfeitures for helping users bypass sanctions worldwide.

According to checks by MARKETING-INTERACTIVE, Binance is still pushing out promotional material with Ronaldo’s image. In fact, yesterday, the brand took to Instagram to post a teaser for a new product with the football star with the caption, “cooking up something with @Cristiano. Stay tuned.”

MARKETING-INTERACTIVE has reached out for a statement.

Ronaldo’s multi-year partnership with Binance began in November last year with the launch of his first NFT collection. The launch featured a global marketing campaign featuring Ronaldo which aimed to introduce his fans to Web3 through the world of NFTs, said a statement by the brand.

"We are honoured to collaborate with Ronaldo to help more people understand blockchain and showcase how we are building Web3 infrastructure for the sports and entertainment industry,” added Binance co-founder and chief marketing officer He Yi about last year’s launch.

“It was important to me that we created something memorable and unique for my fans as they are such a big part of my success,” said Ronaldo at the time. 

“With Binance, I was able to make something that not only captures the passion of the game but rewards fans for all the years of support,” he explained.

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