Soccer luminary Cristiano Ronaldo finds himself in the eye of a storm, facing a class-action lawsuit seeking a staggering $1 billion in damages. The bone of contention is his role in promoting cryptocurrency-related "non-fungible tokens," or NFTs, issued by the embattled cryptocurrency exchange, Binance.
Allegations of Deceptive Promotion
Ronaldo’s promotions of Binance are the crux of the allegations. Critics claim them to be “deceptive and unlawful.” The Portuguese soccer star had launched his inaugural NFT “CR7” collection with Binance in November of the previous year. The move was timed to align with the 2022 World Cup. The NFTs, with starting prices ranging from about $77 to $10,000, featured seven animated statues. These statues were modelled after Ronaldo's iconic moments in his career.
The lawsuit paints a picture of investors being misled into making risky bets on the platform. A direct result of Ronaldo's promotion of Binance, it contends. The lawsuit's implications are far-reaching, involving not just the soccer star's reputation but also the credibility of Binance and the burgeoning NFT market.
Mounting Troubles for Binance
Besides Ronaldo's legal quagmire, Binance itself is grappling with controversies. These include a colossal $4 billion settlement and the consequential resignation of its founder. These developments have cast a long shadow over the cryptocurrency exchange, muddying the waters for investors and shaking the very foundations of the crypto world.
As the lawsuit gains momentum, it spotlights the need for clarity in the regulation of cryptocurrency-related investments. The DeVere Group’s leader highlights this issue, pointing out the complexity of the problem. He argues that the focus should be on the regulators, who have yet to provide clear guidelines for the crypto market.