As the regulatory scrutiny of Binance continues to gain intense momentum, a global football icon, Cristiano Ronaldo has been charged for promoting the crypto exchange. In a legal document obtained by Binbits, the Portuguese football sensation was accused of advertising Binance, thus luring investors to trust the exchange.
Meanwhile, the lawsuit was instituted by Michael Sizemore, Mikey Vongdara, and Gordon Lewis who claimed to have lost their financial investments after falling to Ronaldo’s promotion of the exchange. Don’t forget that the exchange is currently facing legal troubles for failing to comply with various anti-money laundering issues.
In the United States, Binance and its former CEO, Changpeng Zhao were accused of willful evasion of the financial laws. Specifically, the Commodity Futures Trading Commission (CFTC), alleged that Changpeng Zhao instructed employees and customers of Binance to ignore compliance measures in the country.
Amid the legal tussle, Changpeng Zhao decided to step down from his role as the CEO of Binance. In the same vein, he pleaded guilty to the charges against him. Consequently, he announced Richard Teng, the former Global Head of Regional Markets as the new CEO of Binance. He believes Teng will champion Binance’s commitment to transparency, security, and growth.
Cristiano Ronaldo and his collaboration with Binance
Meanwhile, as the lawsuit continues, investors feel Cristiano Ronaldo has a case to answer for his dealings with Binance. Recall that in June 2022, Binance signed a strategic multi-year collaboration with the former Manchester United player. With the partnership, Ronaldo undertook a global campaign for Binance and the crypto industry at large. The campaign also expose people to the rudiments of Web3 so as to enhance its popularity and adoption.
Then, Ronaldo and Binance created a series of exhibitions that were made exclusively available on the Binance NFT platform. In a bid to expose football lovers to NFTs, Binance launched the Cristiano Ronaldo collection. However, as Binance continues to face legal scrutiny, investors claimed Ronaldo was aware that the exchange sold unregistered crypto securities.
Also, the plaintiffs said the Portuguese could have sought external advice before promoting the exchange owing to his wealth of experience and resources. In the lawsuit, the plaintiffs referenced to a caution by the SEC, asking influencers to reveal the payment received for promoting cryptocurrencies. It was alleged that Ronaldo failed to do that.
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