Cryptocurrency Exchange 'Binance' Entangled in Lawsuit
"Ronaldo Misleads Investors by Promoting Binance"
Global soccer star Cristiano Ronaldo is facing the risk of having to pay massive damages after promoting Binance, the world's largest cryptocurrency exchange.
According to major foreign media reports on the 29th (local time), Ronaldo, who promoted Binance, the world's largest cryptocurrency exchange, has become embroiled in a lawsuit demanding $1 billion (approximately 1.3 trillion KRW) in damages.
This class-action lawsuit was filed just one week after the U.S. Department of Justice imposed sanctions on Binance.
The U.S. authorities fined Binance for knowingly allowing North Korea, Iran, and terrorist organizations to use Binance for funding, and in response, American consumers filed a class-action lawsuit claiming that Ronaldo, who advertised for Binance, should also compensate U.S. consumers for their damages.
The plaintiffs claim that Ronaldo misled American investors by promoting Binance and are seeking $1 billion in damages.
Screenshot of Cristiano Ronaldo Binance promotional video. [Source=Binance official Twitter (X) account]
Previously, Ronaldo had launched a non-fungible token (NFT) collection themed around his uniform in collaboration with Binance in July last year.
American consumers argued that after Ronaldo announced his NFT with Binance, searches for Binance increased by 500%, demonstrating a significant impact, and claimed that Ronaldo misled U.S. investors by advertising Binance.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), also urged that "celebrities must disclose to the public from whom and how much they received to promote cryptocurrency investments."
Meanwhile, on the 22nd, the U.S. Department of Justice issued a statement announcing that Binance CEO Zhao Changpeng admitted to money laundering charges related to terrorist organizations and agreed to pay a $4.3 billion (approximately 5.55 trillion KRW) fine.
The Department of Justice also added that CEO Zhao will step down as Binance CEO.
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