In recent times, the cryptocurrency industry has seen an uptick in lawsuits, particularly those targeting celebrities who have endorsed crypto exchanges like FTX and Binance.
These legal actions are primarily spearheaded by a group of South Florida lawyers, with the latest lawsuit involving global soccer icon Cristiano Ronaldo for promoting Binance’s (alleged) unregistered securities.
RONALDO SUED FOR PARTNERSHIP WITH BINANCE
What absolute nonsense… do you agree?
Cristiano Ronaldo is facing a proposed class-action lawsuit for his role in promoting Binance, a crypto exchange currently facing legal challenges. The lawsuit, filed in a U.S. district court in… pic.twitter.com/LecbxiVlH2
— The Wolf Of All Streets (@scottmelker) November 29, 2023
Cristiano Ronaldo and Binance: A Questionable Collaboration?
The lawsuit against Ronaldo revolves around his participation in Binance’s marketing campaign for NFTs in 2022.
Allegations suggest that these promotions involved “mass solicitation of investments in unregistered securities,” a violation under specific financial regulations. Ronaldo’s representatives have yet to respond to these allegations.
Besides Ronaldo, class-action suits have also been filed against Major League Baseball, Formula 1, Mercedes-Benz, and the advertising agencies behind FTX’s promotional campaigns.
These suits are part of a broader legal crusade against celebrity endorsers of failed crypto exchanges, which led to massive customer losses.
The backlash started back at the end of 2022, when a class-action suit was filed against celebrities, including Jimmy Fallon, Justin Bieber and Serena Williams for promoting Bored Ape Yacht Club NFTs.
Crypto Legal Battle for $5 Billion: A Roster of High-Profile Names
Leading the legal charge, attorney Adam Moskowitz and his team have filed suits on behalf of investors against celebrities like Tom Brady, Gisele Bündchen, Shaquille O’Neal, and others.
The lawsuits argue that these celebrities were compensated with funds directly taken from customer deposits, contributing to a dramatic financial collapse in the crypto sector.
Moskowitz’s legal team, including the firms Mark Migdal & Hayden and Boies Schiller and Flexner, is pursuing at least $5 billion in damages from those who promoted the crypto exchanges.
The ongoing legal battle sees these celebrities contesting the claims in court.
Moskowitz’s interest in crypto-related legal issues began over two years ago, culminating in a lawsuit against Voyager before its collapse.
His legal efforts gained momentum with favorable court rulings, positioning him at the forefront of such crypto legal actions.
Expanding the Legal Net: From Celebrities to Financial Influencers
In a recent development, Moskowitz’s legal team filed a class-action suit against YouTube financial influencers for promoting FTX, alleging uncritical endorsement in exchange for payment – although the resolution of these cases varies, with some settled and others ongoing.
These lawsuits underscore a growing trend of legal accountability in the cryptocurrency industry, especially concerning celebrity endorsements.
They highlight the need for greater transparency and adherence to financial regulations in the promotion of crypto investments.
The legal scrutiny faced by celebrities like Ronaldo, Tom Brady, and others serves as an emerging cautionary tale.
It emphasizes the importance of due diligence and the potential legal repercussions of endorsing financial products without proper disclosure and compliance with securities laws.
The Bottom Line
The surge in lawsuits against celebrity endorsers marks a significant shift in the crypto industry, it reflects a growing awareness and demand for legal compliance, potentially reshaping how cryptocurrencies and related products are promoted in the future.
As the celebrity legal battles unfold, the outcomes will likely have far-reaching implications for celebrity endorsements and the broader crypto market.