In a surprising turn of events, football sensation Cristiano Ronaldo finds himself at the center of a legal storm as investors file a class action lawsuit in the United States. The lawsuit targets Ronaldo’s endorsement of Binance, the global cryptocurrency giant, alleging that his promotion resulted in substantial financial losses for investors. The plaintiffs are seeking damages exceeding a staggering $1 billion (£790 million).
Ronaldo’s association with Binance took a notable turn in November 2022 when the cryptocurrency exchange unveiled its first “CR7” collection of non-fungible tokens (NFTs) in collaboration with the football superstar. NFTs, virtual assets with no tangible form, have gained popularity as a means of establishing ownership for digital content like images and videos.
The “CR7” branding, derived from Ronaldo’s initials and iconic shirt number, extends beyond the digital realm, encompassing various products from footwear to fragrances. This branding has significantly contributed to Ronaldo’s status as one of the wealthiest athletes globally.
The class action lawsuit alleges that Ronaldo’s enthusiastic promotion of Binance, particularly in the context of NFTs, misled investors and resulted in substantial financial setbacks. Investors argue that they were influenced by Ronaldo’s endorsement, expecting lucrative returns on their investments.
Binance, a key player in the cryptocurrency market, has not yet responded to the allegations. The BBC reached out to both Ronaldo’s management company and Binance for comments, but as of now, there has been no official statement from either party.
The November 2022 announcement of the “CR7” NFT collection was accompanied by a social media video where Ronaldo expressed his excitement about changing the NFT game and elevating football to new heights. However, the lawsuit suggests that this endorsement may have had unintended consequences for investors who trusted Ronaldo’s influence.
As the legal proceedings unfold, questions arise about the responsibilities of celebrities in endorsing financial products and the potential impact on investors. The outcome of this case could have far-reaching implications for the intersection of sports, celebrity endorsements, and the volatile world of cryptocurrency investments.
- What is the lawsuit against Cristiano Ronaldo about?
The lawsuit alleges that Ronaldo’s endorsement of Binance, specifically in the context of non-fungible tokens (NFTs), led to financial losses for investors.
- How much in damages are the plaintiffs seeking?
The plaintiffs are seeking damages exceeding $1 billion (£790 million).
- When did Binance announce its “CR7” NFT collection with Cristiano Ronaldo?
Binance announced the “CR7” NFT collection in November 2022.
- What is the significance of “CR7” in Ronaldo’s branding?
“CR7” represents Cristiano Ronaldo’s initials and shirt number, serving as branding across various products, contributing to his status as one of the wealthiest athletes.
Cristiano Ronaldo’s involvement in the Binance lawsuit highlights the potential pitfalls of celebrity endorsements in the world of cryptocurrency. As legal proceedings unfold, the case raises important questions about the responsibility of influencers in promoting financial products and the consequences for trusting investors. The outcome will undoubtedly have implications for both the sports and cryptocurrency industries.