Why is the SEC Suing? Inside the $1 Billion Lawsuit Against Ronaldo

TL;DR,

• Cristiano Ronaldo NFTs are the center of a $1 billion class-action lawsuit alleging deceptive promotion, despite the initial announcement driving a massive 500% increase in search traffic for Binance.
• While legal battles continue regarding unregistered securities, Binance has successfully delivered high-end utility to holders, including an exclusive “Train with CR7” event in Lisbon, proving the partnership isn’t just a “rug pull.”
• Investors should treat these digital assets as fan collectibles rather than financial instruments, as secondary market prices have dropped significantly and regulatory uncertainty surrounds the future of celebrity-endorsed crypto projects.

Cristiano Ronaldo NFTs, one of the most closely watched celebrity-crypto collaborations in Web3 history. A multi‑year collaboration with Binance has now become a high‑profile class‑action lawsuit and U.S. enforcement actions against Binance.

However, what generally brought about such legal scrutiny? A sports NFT is now a $1 billion class-action lawsuit. Here are the specifics about the CR7 NFT collection and why the US is hot on its trail.

How the CR7 NFT Collection Works

The first CR7 NFT collection came out on November 18, 2022, the day before the FIFA World Cup, to get more attention from football fans. According to official announcements, this first drop had 6,645 NFTs divided into four levels of rarity:

• 5 NFTs in the Super Rare (SSR) category, with a starting auction price of 10,000 BUSD.
• Super Rare (SR): 40 NFTs that start at 1,700 BUSD
• Rare (R): 600 NFTs
• Normal (N): 6,000 NFTs, with prices starting at 77 BUSD

The collection had seven animated statues that showed decisive moments from Ronaldo’s life, from when he was a child in Portugal to when he scored the bicycle kick that changed his career. Premium tiers came with special benefits, such as personal messages, signed merchandise, and guaranteed access to future drops.

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Since then, Binance has released five additional collections:

• Drop 2 (July 2023): “ForeverCR7: The “GOAT“—29,327 NFTs
• Drop 3 (October 2023): “CR7 ForeverZone”—50,000 mystery boxes
• Drop 4 (May 2024): “Forever Worldwide: The Road to Saudi Arabia”
• Drop 5 (December 2024): “ForeverSkills”
• Drop 6 (June 2025): “Forever To The Moon”—7,777 free NFTs

The collections were marketed as experiences first, not investment products. Ronaldo said,

“It was important to me that we created something memorable and unique for my fans, as they are such a big part of my success.”

Positioning the items as digital collectibles for football fans.

However, the CR7 NFT collection soon caught the attention of the SEC, who now decided its legal grey area posed some risks.

Inside the $1 Billion Lawsuit Against Cristiano Ronaldo

A class-action lawsuit was filed against Ronaldo in the U.S. District Court for the Southern District of Florida on November 27, 2023. The case number is Sizemore v. Ronaldo, Case No. 1:23-cv-24481. The plaintiffs seek at least $1 billion in damages, alleging his promotion of Binance was “deceptive and unlawful.”

The SEC complaint alleges unregistered exchange activity, asset commingling, and market manipulation, citing internal messages (e.g., a 2018 compliance officer: “We are operating as a fking [sic] unlicensed securities exchange in the USA, bro”). OFAC’s settlement cited egregious conduct, including helping users circumvent controls.

Federal law requires celebrities to publicly disclose payment received for promoting securities. The lawsuit alleges Ronaldo did not meet this requirement.

The complaint characterizes Ronaldo’s promotion as “sustained and aggressive,” claiming it led to a 500% increase in Binance searches within a week of the NFT announcement. The plaintiffs’ legal filing provides this number, which no third-party analytics have verified.

The lawsuit uses recent court rulings that increased the responsibility of celebrities for promoting cryptocurrencies, like Wildes v. Terra and Pino v. Brown, which decided that social media posts can be seen as asking for investments if they benefit the promoter financially.

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Some few updates: on May 4, 2024, U.S. District Judge Roy Altman denied Ronaldo’s motion to dismiss, ruling that plaintiffs had a plausible claim. The case against Binance (Sizemore v. Zhao) received a stay three days later, pending arbitration proceedings. The case is still on hold as of March 2025, and Binance is still pushing for arbitration.

Fan Utility: Binance‑Sponsored ‘Train with CR7’ Events

This project blends celebrity access with blockchain distribution at a global scale—testing whether star‑driven experiences can sustain engagement and trust in a volatile market for sports NFTs.

To maintain its allure, Binance promised perks and delivered with the Lisbon training session.

In January 2024, five SSR holders from Drop 2 participated in the “Train with CR7” event in Lisbon, Portugal, where Ronaldo personally coached fans. Video footage of the Binance-sponsored NFT training events has been used by the crypto firm to counter “rug pull” narratives and demonstrate that premium perks were actually fulfilled.

The training worked, and the collaboration continues to date, showcasing that neither party has terminated the partnership despite the pending billion-dollar lawsuit.

Risks and Trade‑offs for Fans and Stakeholders

Cristiano Ronaldo NFTs generate hype, possess value, and offer perks; however, these factors do not eliminate their associated risks. Some of its positive outlooks are its verified delivery of marquee utility (training session) and continued releases, but concerns still loom.

For instance:

Financial Value Concerns:

• Secondary market floor prices for “Normal” rarity items have dropped significantly, with most holders viewing them as souvenirs rather than investments.
• Like most sports NFTs, values declined during the 2022-2023 bear market.

Legal Uncertainty:

• The stay lawsuit creates ongoing uncertainty about the partnership’s future..
• If arbitration forces the main Binance case into private proceedings, the Ronaldo case may be dismissed or similarly diverted.

Delivery of Perks:

• Some holders have received high-tier perks.
• Lower-tier benefits are still less well-known than general merchandise promises.
• Releases will continue until 2025, keeping people interested.
• Switching to free mints lowers the risk for buyers up front.

What This Means for Collectors and Football Fans

For football fans, the Cristiano Ronaldo NFTs partnership highlights the pros and cons of digital collectibles endorsed by celebrities. As fans and participants of the mint collectible, it’s important to monitor court docket updates for Sizemore v. Ronaldo (Case No. 1:23-cv-24481). The arbitration outcome in the main Binance case will likely determine whether this lawsuit proceeds.

Furthermore, it’s crucial to consider the CR7 NFT collection as a collectible or fan experience, not as an investment. The legal precedent being established in celebrity crypto cases suggests increased liability for promoters, which could affect future collection values.

The $1 billion lawsuit isn’t new to Binance, especially with the organization having approximately $4 billion in settlements with U.S. regulators [OFAC settlement, Changpeng Zhao step down, and the Independent Compliance Monitor for five years]. However, that’s for another day.