Cristiano Ronaldo, MLB, and Mercedes F1 Hit with Litigation Relating to Binance, FTX
Cristiano Ronaldo, Major League Baseball, F1, and Mercedes-Benz and global advertising agency, Dentsu, are among the defendants listed.
The litigations come less than a month after FTX founder, Sam Bankman-Fried, was found guilty on seven different fraud-related charges in Manhattan federal court and less than a week after Binance founder, Changpeng “CZ” Zhao pleaded guilty to violating numerous federal statutes, including the Bank Secrecy Act.
Three of the lawsuits involve numerous organizations accused of “aiding and abetting and/or actively participating in the massive, multi-billion dollar fraud” committed by FTX through advertising the company as a safe and reputable exchange. The remaining lawsuit alleges Ronaldo, who partnered with Binance, “engaged in mass solicitation of investments in unregistered securities on behalf of Binance.”
“Evidence now reveals that Binance’s fraud was only able to reach such heights through the offer and sale of unregistered securities, with the willing help and assistance of some of the wealthiest, powerful and recognized organizations and celebrities across the globe – just like Defendant Ronaldo,” reads the filing against the soccer superstar. “Binance’s partnership with celebrities like Ronaldo was clearly designed to use the positive reputation associated with specific celebrities to convince consumers that Binance was a safe place to buy and sell cryptocurrency.”
Zhao, a Dubai resident who was recently ordered to not leave the U.S. by a federal judge, has since resigned from his role as CEO of Binance. Moreover, the crypto exchange must pay $4.3 billion in forfeitures and make a “complete exit” from the U.S. market.
Zhao’s sentencing is currently scheduled for late February 2024.
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