Fri, Dec 1
"Forewarned is forearmed!" - This must be the thought passing through Gary Gensler's mind today; not long ago, he stated that celebrities promoting businesses involving securities should disclose their earnings.
Taking advantage of a loophole in securities law, a group of American investors alleges that Cristiano Ronaldo (CR7) used his influence to promote and possibly manipulate followers into investing in unregistered securities through the Binance platform. The investors filed a lawsuit that could heavily impact the Portuguese football star's finances.
In the lawsuit, the group demands an astronomical amount, even for CR7, of $1 billion!
In 2022, Cristiano Ronaldo and Binance reached an agreement for the soccer superstar to launch his NFT product, CR7, aimed at rewarding fans who have supported him throughout his career. The initial batch was released, and all CR7 fanatics wanted a piece of the NFTs, sold for prices ranging from $77 to $10,000 for the rarest ones.
As expected, Cristiano Ronaldo utilized social media to announce the NFTs, drawing in admirers, supporters, and those who appreciate his work. This flooded Binance, resulting in millions of dollars exchanged between Cristiano and Binance. This is where the group filing the lawsuit against the footballer finds grounds to pursue the case, as Ronaldo promoted Binance products and unwittingly enticed people to invest with the platform.
With over 110 million followers on Twitter alone, CR7 directed significant traffic to Binance to acquire his NFTs. Some took the opportunity to make investments in unregistered securities.
The group, filing the lawsuit in a Florida court on November 27, capitalizes on a loophole in securities law, categorizing Binance as illegal in the United States. The case is ongoing, aiming to demonstrate that the former CEO CZ may have defrauded clients similar to the FTX case, where millions were illegally used by the founder, now incarcerated.
Ronaldo, despite having a team of knowledgeable and well-paid consultants, seems to have overlooked this situation. Now, he may need to negotiate to avoid paying the $1 billion demanded by the lawsuit. He entered the business aware of the risks, and now he must endure the consequences.
What are your thoughts on this new hot potato involving Binance? What do you expect from the lawsuit against Ronaldo? Do you believe it has a legitimate basis or is it just another group trying to capitalize on the situation? Share your thoughts in the comments below.
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