The rise of cryptocurrencies has not only transformed the financial world, but has also entangled countless celebrities in legal battles. From secret marketing to class action lawsuits, the enticing appeal of digital currency has caused substantial legal problems for some of the greatest names in entertainment and sports. Earlier this week, Nigerian-American pop sensation David Adeleke, also known as Davido, released his meme coin $Davido.
Crypto-Scandals
Within 24 hours of the release, social media was rife with allegations of the ‘Timeless’ singer’s unethical behaviour. Celebrity endorsements for cryptocurrencies have proven to be a double-edged sword. While they might increase the visibility and apparent validity of digital financial products, a lack of transparency and regulatory control can result in major legal ramifications.
Here are ten notable foreign celebrities that have been taken to court over Crypto-Scandals:
1. Kim Kardashian
In 2023, the US Securities and Exchange Commission (SEC) accused reality TV actress Kim Kardashian with endorsing EthereumMax on Instagram without disclosing the $250,000 payment she received for the promotion. According to the Hollywood Reporter, Kardashian resolved the dispute for $1.3 million.
2. DJ Khaled
DJ Khaled faces similar SEC allegations for failing to disclose payments for soliciting investments in an initial coin offering (ICO). He resolved the matter for $152,725.
3. Floyd Mayweather Junior
Floyd Mayweather Jr., a popular boxer, was also charged by the SEC with failing to disclose payments made for promoting ICOs. He resolved his case for $614,775.
4. The Real Madrid star
A $1 billion class action lawsuit against soccer star Cristiano Ronaldo is now pending as a result of his support of Binance, the biggest cryptocurrency exchange in the world. Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance,” according to a lawsuit filed in a Florida court. This includes selling his own non-fungible tokens (NFTs). Investors are said to have suffered large financial losses as a result of these acts.
5. Steven Baygal Hollywood actor
Steven Seagal was charged by the SEC for concealing money he got in exchange for endorsing an initial coin offering (ICO). Highlighting the repercussions of covert cryptocurrency advertisements, Seagal consented to resolve the allegations for $314,000, pay fines, and promise not to promote any securities for a predetermined amount of time.
6. The quarterback, Tom Brady
An FTX investor sued Tom Brady last year for endorsing the now-defunct cryptocurrency platform. It does not, however, specify any fine that he must pay the court directly. Brady, however, is a party to a larger class-action case along with other famous people, alleging that FTX used dishonest business tactics. Brady allegedly lost $30 million in the FTX collapse, mostly due to his ownership share in the company. Brady, Bündchen, and other parties have refuted the claims and filed a motion to dismiss the case.
7. Fallon Jimmy
Jimmy Fallon, the TV personality, was sued for his role in pushing NFTs from the Bored Ape Yacht Club. He was a party to a lawsuit involving the Bored Ape Yacht Club and the advertising of NFTs (non-fungible tokens). Fallon and several other celebrities are listed in a class-action lawsuit that claims they promoted these digital assets in a deceptive manner.
8. Tennis player Serena Williams Serena
Williams, a tennis player, ran into legal issues when she supported bitcoin initiatives. Williams participated in the prominent marketing of a number of cryptocurrency projects, which prompted legal actions alleging that her support of these ventures misled investors about their stability and possible returns.
9. The Snoop Dogg Rapper
Snoop Dogg has been sued for his advertising; he is well-known for his participation in several NFTs and digital currency initiatives. According to one such situation, Snoop Dogg’s support of some cryptocurrencies caused their prices to soar, which in turn caused investor losses when the market corrected.
10. The Bieber Brothers
Due to his cryptocurrency connection, Justin Bieber has also been sued. Due to his investments in NFTs (non-fungible tokens), Bieber has also suffered large financial losses. A Bored Ape NFT that Bieber bought in January 2022 for $1.3 million has since dropped in value by roughly 95%, with an estimated worth of only $60,000.
