According to a report by BBC, the star footballer Cristiano Ronaldo is facing a class lawsuit action in the United States over promoting the largest crypto exchange Binance.
The plaintiffs contend that their investments resulted in losses because of Ronaldo's recommendation.
Binance back in November 2022 announced its first CR7 collection of NFTs partnering with the footballer which Ronaldo claimed would reward fans "for all the years of support".
CR7, are the initials of Ronaldo with his shirt number and is used as a branding in different products from footwears to fragrances. This has made Ronaldo one of the wealthiest athletes in the world.
Ronaldo in a social media video announced the partnership, Ronaldo told would-be investors "we are going to change the NFT game and take football to the next level".
The cheapest NFT from the collection had a price of $77 when in November 2022 it went on sale. One year later it priced at about $1.
According to the claimants, promotion of Binance by the star footballer led to a "500% increase in searches" for the largest crypto exchange which is registered in the Cayman Islands.
Additionally, they claim that it made people to use the company to invest in "unregistered securities," such as the cryptocurrency BNB offered by Binance.
According to the United States Securities and Exchange Commission (SEC), these assets can be considered securities and those celebrities who endorse them must follow the US law.
The claimants also said that Ronaldo should have shared how much was he being paid but he didn't.
The star footballer in a recent post on social media saying they are "cooking something up" appears like they have plans of working together again in the future.
What are your thoughts on this new development?
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