Ronaldo to be served with $1B lawsuit via X over Binance NFTs

Cristiano Ronaldo, the world-famous soccer player, is facing a legal challenge from a group of Binance customers who are seeking to serve him with a $1 billion lawsuit through the social media platform X, formerly known as Twitter. The plaintiffs accuse Ronaldo of promoting non-fungible tokens (NFTs) linked to the troubled cryptocurrency exchange Binance, which they claim led them to make risky and costly investments.

Ronaldo’s endorsement of Binance was deceptive and unlawful, plaintiffs allege

The lawsuit, filed in the Southern District of Florida in November 2023, contends that Ronaldo’s endorsement of Binance was both deceptive and unlawful. The plaintiffs argue that partnerships between Binance and influential figures like Ronaldo facilitated the sale of unregistered securities and misled investors about the nature and risks of the NFTs.

The lawsuit claims that Ronaldo promoted the “CR7” NFT collection, which featured his initials and shirt number, on his social media accounts in November 2022. The NFTs were issued by Binance and sold for millions of dollars in its native cryptocurrency, Binance Coin (BNB). However, the plaintiffs allege that the NFTs were worthless and untradeable, and that Binance failed to disclose the legal and regulatory issues it was facing in several countries.

The plaintiffs are seeking damages of “a sum exceeding” $1 billion, as well as an injunction to prevent Ronaldo from further promoting Binance or its products. They are also requesting an order authorizing them to serve Ronaldo via X, and email to his current counsel representing him in other federal litigation.

Ronaldo is still promoting Binance despite its legal troubles

Ronaldo, who currently plays for Manchester United, has not publicly commented on the lawsuit. He is still promoting Binance as per a post on Binance’s X account on Jan 17, 2024, where the soccer legend can be seen with social media influencer Khaby Lame wearing a Binance merchandise.

Binance, on the other hand, has admitted to wrongdoing and paid over $4 billion in penalties and restitution to different federal government agencies. Its former CEO, Changpeng Zhao, resigned from his position after filing a guilty plea. He currently awaits sentencing in the US, which is scheduled for next month.

Binance is the largest cryptocurrency exchange in the world by trading volume, but it has been under scrutiny from regulators and law enforcement agencies across the globe. It has been accused of operating without proper licenses, facilitating money laundering and tax evasion, and offering risky and complex products to unsuspecting customers.

NFTs are a controversial and volatile form of digital art

NFTs are unique digital tokens that represent ownership of a piece of digital art, such as an image, video, or music. They are created and stored on a blockchain, a distributed ledger that records transactions and ensures their authenticity and security.

NFTs have become a popular and lucrative form of digital art, attracting celebrities, artists, and collectors who see them as a new way of expressing themselves and creating value. However, NFTs are also controversial and volatile, as they raise questions about the environmental impact, legal rights, and intrinsic value of the digital art they represent.

Some critics argue that NFTs are a wasteful and harmful use of blockchain technology, as they consume large amounts of energy and generate carbon emissions. Others contend that NFTs are a legal and ethical minefield, as they may infringe on the intellectual property rights, privacy rights, and moral rights of the original creators and owners of the digital art. Still others claim that NFTs are a speculative and risky investment, as they are subject to market fluctuations, hacking, and fraud.