Binance promotion: star Cristiano Ronaldo targeted by $1 billion red card

Cristiano Ronaldo – credit: Student News Agency

Muse of Binancesoccer star Cristiano Ronaldo is the target of a collective action at US for its promotion alongside theexchange from unregistered securities. A case which recalls the French complaint against Binance for LUNA.

It’s not a good time to be sponsoring crypto exchange BinanceBinance, which was fined a record $4 billion last month. As a result, its founder, CZ, has lost his seat as CEO and is barred from leaving the United States.

Playing since the beginning of the year for the Saudi Arabian league, Cristiano Ronaldo is a world-famous figure. That’s why Binance signed a sponsorship contract with the star.

Customers exposed to misrepresentation

These commercial links have now earned Ronaldo legal action in the United States. United States. A class action complaint has been filed in a Florida court against the soccer star.

The grounds: having “promoted, aided and/or actively participated in the offer and sale of unregistered securities in coordination with Binance”.

The plaintiff is seeking the exorbitant sum of one billion dollars. Through Ronaldo, the exchange itself is being targeted. The complaint, lodged by California resident Michael Sizemore, accuses the player and his sponsor of promoting illegal financial products in the USA.

The investor judges “after being exposed to (…) misrepresentations and omissions (…) regarding Binance platforms”. And the crypto exchange is said to have taken advantage of the star player’s high exposure for its operations.

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Binance, promoter of LUNA, attacked in France

Mr. Ronaldo’s promotions solicited or assisted Binance in soliciting investments in unregistered securities by encouraging its millions of followers, fans and supporters to invest on the Binance platform,” the legal document states.

This is not Binance’s first case of contentious advertising. In France, 15 investors filed a complaint in December 2022. Their grievance: the advertising of LUNA’s UST and secure returns by the stock exchange, without being PSAN and without the intervention of the AMF.

The advertising carried out by the exchange, in particular via a dedicated Telegram channel (Binance French), would have notably extolled the merits of LUNA and UST tokens – whose prices evaporated with the collapse of the Terra ecosystem.

Earlier in 2022, the Financial Times also criticized the company for its international promotion of the two tokens, whose value was reduced to nothing.

Binance’s conviction in the US could considerably weaken its relations with famous influencers and their interest in sponsoring the exchange.

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