Cristiano Ronaldo, MLB, and Mercedes F1 Hit with Litigation Relating to Binance, FTX

Four class action lawsuits have been filed against prominent individuals and organizations, including Cristiano Ronaldo, Major League Baseball (MLB), Mercedes F1, and global advertising agency Dentsu. 

The litigation revolves around their promotion of cryptocurrency exchanges Binance and FTX. This legal action comes on the heels of significant controversies involving the founders of these crypto platforms.

🚨💼 Four recent class action lawsuits were filed against high-profile organizations and individuals for promoting Binance and FTX, according to court documents filed in Miami on Monday.#CryptoNewshttps://t.co/5F4rsHHS3M

— Cryptonews.com (@cryptonews) November 28, 2023

The lawsuits were filed shortly after the founder of FTX, Sam Bankman-Fried, was found guilty of seven fraud-related charges in a Manhattan federal court. The charges included accusations of massive fraud, with undisclosed access to customer funds used to fund extravagant lifestyles and high-profile sponsorship deals.

Similarly, the legal action follows the guilty plea of Changpeng “CZ” Zhao, the founder of Binance, who admitted to violating federal statutes, including the Bank Secrecy Act. Zhao has since resigned from his role as CEO, and Binance is ordered to pay substantial forfeitures and exit the U.S. market entirely.

Three of the lawsuits target various organizations, including MLB, Mercedes F1, and Dentsu, accusing them of aiding, abetting, or actively participating in the alleged multi-billion dollar fraud committed by FTX. 

The fourth lawsuit targets Cristiano Ronaldo, accusing him of engaging in the “mass solicitation of investments in unregistered securities on behalf of Binance.”

According to court filings, evidence suggests Binance’s fraudulent activities were facilitated by partnerships with globally recognized organizations and celebrities, including Ronaldo. 

The lawsuit claims that such partnerships were designed to leverage the positive reputation of these celebrities to convince consumers that Binance was a secure platform for cryptocurrency transactions.

Consequences for Crypto Platforms

The legal actions come amid a broader crackdown on fraudulent activities within the cryptocurrency space. 

While Sam Bankman-Fried faces potential additional charges, including foreign bribery, Changpeng Zhao is looking at a potential 12-18 months in prison. Binance is ordered to pay significant forfeitures and exit the U.S. market entirely.

These lawsuits highlight the increasing scrutiny and legal challenges that high-profile individuals and organizations associated with cryptocurrency exchanges face. 

As regulatory authorities tighten their grip on the crypto industry, the consequences of fraudulent activities and deceptive practices are becoming more severe. 

The outcomes of these legal proceedings could have broader implications for the reputation and future operations of crypto exchanges and their celebrity endorsements.