Soccer idol Cristiano Ronaldo sued for $1 billion over NFT scandal

Cristiano Ronaldo is at the centre of a class action lawsuit over his involvement with a controversial cryptocurrency company.

Portuguese soccer superstar Cristiano Ronaldo is facing a $US1 billion lawsuit over his role in promoting non-fungible-tokens (NFTs) from cryptocurrency exchange Binance.

NFTs are digital assets with unique identifiers that indicate ownership of something online, however, they have no physical value.

Binance, the largest crypto exchange in the world, announced a series of NFTs with Ronaldo in November 2022 based on his “CR7” brand, which references his initials and shirt number.

Cristiano Ronaldo is considered by many to be one of the greatest soccer players of all time. Picture: Yasser Bakhsh/Getty Images

Ranging from starting prices of $77 to $10,000, the NFTs depict animated versions of some of Ronaldo’s most recognisable moments in his career.

According to the lawsuit, the “premium” versions of these NFTs sold out within the first week of sales, and the promotion led to a “500 per cent increase in searches” for Binance.

Since this time, NFTs have seen a massive collapse in value, with the $77 NFT of Mr Ronaldo priced at $1 a year later.

The plaintiffs said in the lawsuit they were seeking “a sum exceeding” $US1 billion ($A1.5 billion) for “deceptive and unlawful” promotion of a product that led them to costly investments.

Despite paying billions in fines, Binance is still operating as a crypto exchange firm. Picture: Justin Sullivan/Getty Images

Gary Gensler, chair of the US Securities and Exchanges Commission (SEC), said celebrities such as Ronaldo need to be transparent about what they are receiving in return for promoting cryptocurrency securities.

“When celebrities endorse investment opportunities, including crypto-asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements,” he said.

The crypto sphere had a series of controversies before this suit was filed, including Binance itself being ordered by the US Department of Justice to pay $US4.3 billion ($A6.5 billion) in penalties and forfeitures for operating as an unregistered securities exchange

CEO Changpeng Zhao resigned from the firm after pleading guilty for failing to prevent money laundering through their services.

Former Binance CEO Changpeng Zhao will also be paying $US50 million ($A76 million) in fines. Picture: David Ryder/Getty Images

Boss of consultancy firm DeVere Group Nigel Green said the issue went beyond Ronaldo’s involvement, adding that the cryptocurrency landscape is a market that cannot be ignored.

“Attention should also be directed towards global regulators who have been slow to establish clear guidelines for this evolving financial landscape,” he said.

Meanwhile, Ronaldo is still partnered with Binance, and teased a new collaboration with them at the end of November on his X account.

Cooking something up with @binancehttps://t.co/FMAP5GAdxE

— Cristiano Ronaldo (@Cristiano) November 28, 2023