Portuguese soccer star Cristiano Ronaldo is now embroiled in a class-action lawsuit seeking at least $1 billion in damages for his involvement in promoting non-fungible tokens (NFTs) related to beleaguered cryptocurrency exchange Binance. The lawsuit, filed in the Southern District of Florida, alleges that Ronaldo's endorsement of Binance was deceptive and unlawful, leading investors into costly and risky investments.

The plaintiffs claim that Binance's partnership with high-profile figures like Ronaldo played a significant role in their financial losses. They argue that evidence reveals Binance's fraudulent activities, facilitated by the offer and sale of unregistered securities, with the assistance of influential organizations and celebrities like Ronaldo.

Ronaldo, through his representatives, declined to comment on the matter. Binance, the largest cryptocurrency exchange globally, did not provide an immediate response to requests for a statement from The Associated Press.

In November of last year, Ronaldo launched his first collection of NFTs called "CR7" in collaboration with Binance, coinciding with the lead-up to the 2022 World Cup. The NFTs featured animated statues depicting Ronaldo's memorable moments, including bicycle-kick goals and his childhood in Portugal. The NFTs had starting prices ranging from approximately $77 to $10,000.

The lawsuit alleges that Ronaldo's promotional efforts for the Binance partnership were exceptionally successful, resulting in a 500% surge in online searches using the keyword "Binance" following the announcement of his NFTs. The suit further claims that the premium-level NFTs of Ronaldo's collection sold out within the first week.

One of the allegations in the lawsuit is that Ronaldo failed to disclose the amount he was paid for the Binance partnership. The U.S. Securities and Exchange Commission has previously emphasized the obligation for celebrities to publicly disclose their compensation for promoting securities, including cryptocurrency assets.

Non-fungible tokens (NFTs) are unique digital images with an attached version number that have been added to a cryptocurrency blockchain. Initially experiencing a surge in popularity, NFTs have since faced significant depreciation in value due to scandals and market downturns within the crypto industry.

Binance itself has been grappling with legal issues. Over the summer, the cryptocurrency exchange was accused of operating as an unregistered securities exchange and violating multiple U.S. securities laws. Last week, Binance agreed to pay a settlement of around $4 billion, and its founder, Changpeng Zhao, stepped down as CEO and pleaded guilty to a felony related to money laundering prevention failures on the platform.

This recent lawsuit against Ronaldo is not the first time a celebrity has faced legal action over crypto promotions. In a class-action suit filed in 2022, several Hollywood and sports stars, including Larry David and Tom Brady, were named as defendants for their involvement in promoting FTX, the now-collapsed second-largest crypto exchange. The lawsuit argued that their status made them liable for endorsing FTX's flawed business model.

Cristiano Ronaldo, known as one of the world's wealthiest and most recognized athletes, has represented Portugal's national team and played for notable clubs such as Real Madrid, Juventus, and Manchester United. He currently plays for Al Nassr, a professional team based in Saudi Arabia.

Despite the ongoing lawsuit, Ronaldo has continued to promote Binance on his official website and social media platforms. Recently, he reposted a Binance video on X and hinted at collaborating with the cryptocurrency exchange, stating that he was "cooking something up" on Tuesday.