Cristiano Ronaldo is being accused of endorsing a product that has fallen considerably in the last year
(Image credit: Getty Images)
Cristiano Ronaldo is involved in a $1bn (£790m) class action lawsuit in the United States due to his affiliation with Binance, the cryptocurrency exchange.
In November 2022, Binance released a CR7 range of non-fungible tokens (NFTs) in collaboration with Cristiano Ronaldo, which the former Manchester United forward claimed would "change the NFT game and take football to the next level" while announcing the partnership on social media.
The cheapest NFT in the CR7 collection - which refers to his initials and shirt number - went on sale at $77 last November, but just 12 months later is now worth only $1.
Ronaldo's promotion of Binance has led to claimants filing a lawsuit (Image credit: Binance)
The claimants, therefore, are seeking damages of "a sum exceeding" $1bn, as they allege that Ronaldo's endorsements led to them making loss-making investments. The complaint was filed on Tuesday 28 November to the United States District Court, Southern District of Florida in Miami.
It's alleged that Ronaldo "promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance".
Ronaldo's promotion of Binance also allegedly led to a "500 per cent increase in searches" for the crypto exchange.
Ronaldo is facing a $1bn lawsuit (Image credit: Getty Images)
US Securities and Exchanges Commission (SEC) chair Gary Gensler previously stated that celebrities and sports stars must "disclose to the public from whom and how much you are getting paid to promote investment in securities".
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"When celebrities endorse investment opportunities, including crypto-asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements," Gensler also said.
The claimants allege that Ronaldo didn't disclose how much he was being paid.
Ryan is a staff writer for FourFourTwo, joining the team full-time in October 2022. He first joined Future in December 2020, working across FourFourTwo, Golf Monthly, Rugby World and Advnture's websites, before eventually earning himself a position with FourFourTwo permanently. After graduating from Cardiff University with a degree in Journalism and Communications, Ryan earned a NCTJ qualification to further develop as a writer while a Trainee News Writer at Future.
