Judge’s Ruling on Lawsuit Against Cristiano Ronaldo
Football superstar Christiano Ronaldo’s attempt to dismiss a $1 billion class action lawsuit related to the promotion of non-fungible tokens (NFTs) on Binance was turned down on May 4. The judge presiding over the case, Roy Altman, stated, “We deny without prejudice the Defendant’s 29 motion to dismiss.”
“Accordingly, we direct the Clerk of Court to close and stay this case until we have adjudicated the pending motions to compel arbitration in the related action,” the judge added.
Arbitration, a private form of dispute resolution, allows for a neutral third party to make the final decision on the case, rather than going to court.
Ronaldo’s NFT Collection and Legal Issues
In November 2023, investors filed a lawsuit against Ronaldo, a year after he launched an NFT collection named “CR7” in partnership with Binance. The collection, featuring digital collectibles of Ronaldo and moments from his sports career, was aimed at showcasing “innovation, artistry, and fan engagement,” according to Binance’s website.
Prosecutors accused Ronaldo of promoting the NFTs deceptively and unlawfully, leading to risky investment decisions among consumers. The decline in Ethereum-based NFT activity since early 2022 has raised concerns over such promotions.
Ronaldo’s promotions included engagements on social media platforms like Instagram, where he interacted with other athletes connected to Binance. His activities aimed at enhancing the fan experience through the “ForeverCR7 NFT collection” and providing unique opportunities for those owning his rarest NFTs.
- Last year’s plaintiffs argued that Binance’s success was partly due to the sale of unregistered securities, facilitated by celebrities like Ronaldo.
- Binance is currently facing legal challenges from U.S. regulators concerning the classification of NFTs and tokens on its platform under U.S. securities law.
- The Ronaldo effect led to a significant increase in searches for “Binance” following his collaboration with the platform. His premium NFTs were quickly sold out within a week of launch.
