Cristiano Ronaldo is facing a lawsuit for advertising digital art known as non-fungible tokens (NFTs) on Binance.
In a legal document filed on Monday, the people taking legal action claimed that both the famous Portuguese soccer player and the cryptocurrency exchange made misleading statements to promote the “CR7” NFT collection, which was introduced in November 2022. The plaintiffs are asking for more than $1 billion in damages.
NFTs, Celebrity Endorsements, and Crypto Legal Issues
NFTs are a type of digital art stored on a blockchain. They became very popular in 2021 as people invested in cryptocurrencies like bitcoin and ethereum. However, their value has dropped significantly, with around 95% of them now being considered worthless, according to data from NFT Scan and CoinMarketCap.
The CR7 collection on Binance showcases seven different poses of Ronaldo. The soccer player, who currently plays for Al Nassr in Saudi Arabia, promised to revolutionize the NFT scene and elevate football to new heights.
When it was launched before the FIFA World Cup last year, the least expensive CR7 NFT was priced at $77. However, it has now dropped in value to just $1, as reported by BBC News. The lawsuit filed on Monday claimed that both Ronaldo and Binance were aware that their promotion was directed at people unfamiliar with cryptocurrencies.
Ronaldo is not the first celebrity to face legal action for endorsing NFTs or cryptocurrencies. In December 2022, a class-action lawsuit alleged that Justin Bieber, Serena Williams, Paris Hilton, and several other well-known individuals were paid to promote the Bored Ape Yacht Club digital art collection in a misleading manner.
At the same time, famous figures like the iconic NFL quarterback Tom Brady and “Curb Your Enthusiasm” actor Larry David are dealing with a distinct legal case. This lawsuit revolves around their endorsement of FTX, which is the cryptocurrency exchange led by Sam Bankman-Fried that ultimately faced failure.
Binance and Cristiano Ronaldo Face Legal Turmoil
The legal action against Ronaldo’s NFT involvement occurred shortly after Binance CEO Changpeng Zhao, also known as “CZ,” decided to resign as part of a settlement with the US Department of Justice.
The cryptocurrency exchange received a hefty $4.3 billion fine for breaching anti-money laundering and sanctions regulations. The Department of Justice stated that it did not effectively prevent transactions that transferred funds to terrorist organizations, including Hamas, Al-Qaeda, and ISIS.
Conclusion
Cristiano Ronaldo is facing a lawsuit for promoting the “CR7” NFT collection on Binance, accused of making misleading statements. The claim seeks over $1 billion in damages. NFT values have sharply fallen, and celebrities like Tom Brady and Larry David are entangled in legal challenges over endorsing cryptocurrencies.
