Ronaldo Sued Over Binance Promotions as Crypto Meets Sports World

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As the worlds of cryptocurrency and sports continue colliding, soccer superstar Cristiano Ronaldo finds himself embroiled in litigation stemming from his promotions of embattled crypto exchange Binance.

TWEET: https://twitter.com/Cristiano/status/1729477584977600615

Ronaldo Faces Class Action for Alleged Unregistered Securities

In late November, Ronaldo was hit with a proposed class action lawsuit claiming he “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance.”

The suit alleges Ronaldo, through various promotions including an NFT collection on the exchange, helped Binance solicit investments in what the plaintiffs argue were unregistered securities.

This included promoting Binance’s native BNB token as well as participation in crypto yield-generation programs. Without properly disclosing payments or discussing regulatory guidelines for celebrity crypto endorsements, the legal complaint asserts Ronaldo misled investors.

With top athletes increasingly open to brand deals and projects in the blockchain space, knowing who and what you’re pitching could spell trouble down the line if regulations were broken along the way.

Crypto and Traditional Sports Continue Mixing It Up

Ronaldo Binance

Ronaldo is far from the only sports star tied up in the latest legal challenges shaking crypto markets. MLB and Formula One teams like Mercedes also found themselves named in pending lawsuits related to past promotions of FTX before its dramatic crash earlier this year.

Clearly crypto exchanges saw value in currying favor with sports entities and their legions of fans. FTX was a big sponsor of activities like baseball and even had its name plastered on an NBA arena.

But these arrangements also came with significant risks, as prominent faces could now be tied to brands mired in legal issues.

The intersection of crypto and traditional athletics seems poised to continue generating bizarre stories. From athletes hyping coins on Twitter to entire teams cutting novel sponsorship deals, this area remains one to watch for the latest news.

Be sure to follow EXEcrypto for all the top headlines where crypto and sports collide.

A Complex Courtship Between Crypto and Celebrity

Celebrity mingling with crypto remains a fraught dance, with ever-changing regulations and the whims of a volatile market.

On one hand, the promotion of new blockchain concepts and companies by famous personalities helps spread awareness. But as the Ronaldo case shows, the line between marketing and investment advice can easily blur when big names tout specific projects.

For crypto startups, paying top dollar for star power provides invaluable promotion. But as FTX demonstrated, the rush to ally with celebrities risks overextending if expenses surpass real revenue.

And of course, any legal issues down the line could end up tarring known faces by association. Meanwhile for the stars themselves, crypto deals promise easy money – but also come with new risks of regulatory or market shifts beyond their control.

Both crypto and celebs would be wise to more carefully consider what they’re tied to and why, lest short-term gains lead to long-term headaches.

With so much change happening now in the relationship between these worlds, more bumps are sure to arise. Stay tuned here for the latest developments as crypto and celebrity continue their soap opera courtship.

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