The world’s largest cryptocurrency platform Binance has been hit with serious charges in the US, and Cristiano Ronaldo has been involved in a lawsuit demanding $1 billion in damages.

Cristiano Ronaldo made accusations after promoting Binance

The plaintiffs allege that his promotion induced them to make investments that resulted in losses. They are seeking more than $1 billion in damages.

In November 2022, Binance announced its first collection of non-fungible tokens (NFTs) “CR7” in partnership with Ronaldo, which the soccer player said will reward fans “for all the years of support.”

NFTs are virtual assets that can be bought and sold, but do not have their own physical form in the real world—in other words, they only exist digitally. They are usually used to indicate ownership of something, such as a photo or online video.

“CR7” refers to Ronaldo’s initials and shirt number and is used as a trademark on a range of products, from shoes to perfumes, which have helped him become one of the richest athletes on the planet.

In a social media video announcing the partnership, Ronaldo told potential investors: “We are going to change the rules of NFT and take football to the next level.”

The cheapest NFT in the collection cost $77 when it went on sale in November 2022, but a year later it was priced at around $1.

The plaintiffs allege that Ronaldo’s promotion of Binance led to a “500% increase in searches” for the Cayman Islands-registered cryptocurrency platform.

They also say it has encouraged people to use the firm to invest in what they call “unregistered securities” — such as Binance’s BNB cryptocurrency.

According to the US Securities and Exchange Commission (SEC), these assets can be considered securities – and therefore the celebrities who support them must comply with US law.

SEC Chairman Gary Gensler previously said that celebrities must “disclose to the public from whom and how much they are paid to promote securities investments.”

“When celebrities endorse investment opportunities, including cryptocurrency securities, investors should carefully investigate whether the investment is suitable for them and know why celebrities make such endorsements,” he said, according to News.ro.

The plaintiffs claim that Ronaldo should have disclosed how much he was paid but failed to do so.