The class action plaintiffs, Michael Sizemore, Mikey Vongdara and Gordon Lewis, are seeking damages and funds to cover legal costs. According to the lawsuit, Ronaldo coordinated with Binance to promote, support, and actively participate in the offering and sale of unregistered securities.

The plaintiff said Ronaldo enticed and encouraged millions of fans to invest in Binance’s unregistered securities. Additionally, users who register for Ronaldo’s NFT can use Binance for other purposes, such as investing in Binance Coin (BNB) and cryptocurrency-related programs.

Thanks to his great influence and hundreds of millions of followers on social networks, Ronaldo is an important factor helping Binance become more and more famous. The lawsuit said Ronaldo helped searches for Binance increase by 500% in the week after the first sale. The plaintiff alleges that Ronaldo knew or should have known about Binance selling unregistered digital securities because the player had investment experience and abundant resources to receive support from advisors.

The US Securities and Exchange Commission (SEC) has warned celebrities about the need to disclose payments they receive from cryptocurrency advertising, which the complaint alleges Ronaldo did not do. .

On November 21, Binance founder Changpeng Zhao (CZ) resigned as CEO and pleaded guilty to violating anti-money laundering laws and operating an unregistered exchange. Binance must pay compensation of 4.3 billion USD and accept being monitored by the US government for 5 years. Currently, the former CEO is facing an 18-month prison sentence. The SEC also accused Binance of selling unregistered securities and is investigating whether Binance misappropriated customer funds.