Background

Cristiano Ronaldo, one of the most renowned footballers in the world, is currently embroiled in a significant legal battle. He faces a class-action lawsuit in the United States over his promotion of Binance, the world's largest cryptocurrency exchange. The lawsuit claims that Ronaldo's endorsement led to investors making loss-making investments, and the plaintiffs are seeking damages exceeding $1 billion (£790m)​

The CR7 and Binance Partnership
In November 2022, Binance announced its first "CR7" collection of non-fungible tokens (NFTs) in partnership with Ronaldo. NFTs, digital assets with no physical form, are often used to signify ownership of digital items like pictures or videos. "CR7," referring to Ronaldo's initials and shirt number, is also a branding used in his range of products, from footwear to fragrances​

The Impact of Ronaldo's Endorseme

The launch of the NFT collection saw the cheapest NFT priced at $77. However, a year later, its value plummeted to about $1. The lawsuit alleges that Ronaldo's promotion led to a 500% increase in searches for Binance and influenced people to invest in what they describe as "unregistered securities," such as Binance's BNB cryptocurrency. According to US Securities and Exchange Commission (SEC) regulations, such assets can be considered securities, thus requiring celebrities endorsing them to comply with US laws​

Failure to Disclose Payment
The claimants assert that Ronaldo should have disclosed the amount he was paid for the endorsement, which he reportedly did not do. This omission is a central point of contention in the lawsuit. Nigel Green, CEO of the DeVere Group consultancy firm, highlighted that while Ronaldo's role is significant, the issue is more complex, involving slow regulatory responses to the evolving financial landscape of cryptocurrencies​

Ongoing Collaboration and Broader Implications
Despite the lawsuit, Ronaldo and Binance seem to be planning future collaborations. The footballer hinted at ongoing projects with Binance in a recent social media post. Neither Ronaldo nor Binance has commented on the lawsuit as of now​.

This lawsuit against Ronaldo follows a pattern of legal action against celebrities and major brands for their promotion of cryptocurrency platforms. Similar class action lawsuits have been filed against Major League Baseball, Formula 1, and Mercedes-Benz for promoting the failed crypto-exchange FTX​

Conclusion
The lawsuit against Cristiano Ronaldo underscores the intricate and often murky intersection of celebrity endorsements, cryptocurrency, and legal regulations. As the digital financial landscape continues to evolve, this case may set a precedent for how celebrity endorsements are managed and regulated in the realm of digital assets and securities.