The rise of cryptocurrency has not only revolutionised the financial world but also ensnared numerous celebrities in legal controversies. From undisclosed promotions to class action lawsuits, the glittering allure of digital currencies has led to significant legal troubles for some of the biggest names in entertainment and sports.
Earlier this week, Nigerian-American music star, David Adeleke, a.k.a Davido, launched his meme coin $Davido. 24 hours after the launch, the social media was abuzz with reports of alleged underhand dealings by the ‘Timeless’ crooner.
Celebrity endorsements of cryptocurrencies have proven to be a double-edged sword. While they can significantly boost the visibility and perceived legitimacy of digital financial products, the lack of transparency and regulatory oversight can lead to serious legal consequences.
Hereunder are 10 renowned foreign celebrities who were dragged to court over crypto scandals:
1. Kim Kardashian
In 2023, the United States Securities and Exchange Commission (SEC) charged reality TV star Kim Kardashian for endorsing EthereumMax on Instagram without disclosing the $250,000 payment she received for the promotion. According to the Hollywood Reporter, Kardashian settled the case for $1.3 million.
2. DJ Khaled
DJ Khaled faced similar charges from the SEC for failing to disclose payments received for promoting investments in an initial coin offering (ICO). He settled the case for $152,725.
3. Floyd Mayweather Jr.
Popular boxer Floyd Mayweather Jr. was also charged by the SEC for not disclosing payments for promoting ICOs. He settled his case for $614,775.
4. Cristiano Ronaldo
Soccer superstar Cristiano Ronaldo is currently facing a $1 billion class action lawsuit for his promotion of Binance, the world’s largest crypto exchange. Filed in a Florida court, the lawsuit claims that Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance,” including selling non-fungible tokens (NFTs) of himself. These actions allegedly led to significant financial losses for investors.
5. Steven Seagal
Hollywood star Steven Seagal faced SEC charges for failing to disclose payments he received for promoting an ICO. Seagal agreed to settle the charges for $314,000, paying fines and agreeing to not promote any securities for a specified period, highlighting the consequences of undisclosed crypto promotions.
Other Celebrities Facing Lawsuits Over Crypto Involvement:
1. Tom Brady
Tom Brady was sued last year by an FTX investor over his endorsement of the now-defunct crypto platform.
However, there is no specific fine mentioned that he is required to pay the court directly. Instead, Brady is part of a broader class-action lawsuit involving other celebrities, which alleges that FTX engaged in deceptive practices. Brady reportedly lost around $30 million in the collapse of FTX, primarily through his equity stake in the company Brady, Bündchen, and others have denied the allegations and moved to dismiss the case.
2. Jimmy Fallon
TV host Jimmy Fallon was sued over his involvement with promoting Bored Ape Yacht Club NFTs. He was involved in legal proceedings regarding the promotion of NFTs (non-fungible tokens) with the Bored Ape Yacht Club. Fallon, along with other celebrities, is named in a class-action lawsuit alleging that they engaged in misleading promotion of these digital assets.
3. Serena Williams
Tennis star Serena Williams faced legal challenges related to her endorsement of cryptocurrency projects. Williams was part of the high-profile promotion of various crypto initiatives, leading to lawsuits alleging that her endorsements misled investors about the stability and potential returns of these investments.
4. Snoop Dogg
Rapper Snoop Dogg, known for his involvement in various digital currency projects and NFTs, has faced lawsuits over his promotions. One such case involved allegations that Snoop Dogg’s endorsement of certain cryptocurrencies led to inflated prices and subsequent investor losses when the market corrected.
5. Justin Bieber
Justin Bieber has also been sued over his involvement in cryptocurrency. Bieber has also experienced significant financial losses from his investments in NFTs (non-fungible tokens). Bieber purchased a Bored Ape NFT for $1.3 million in January 2022, but the value of this NFT has plummeted by approximately 95%, with its current value estimated to be around $60,000. There is speculation that Bieber might have received the NFT for free in exchange for promoting it on social media, which could mean his effective financial loss is less than it appears.However, these claims have not been officially confirmed by the involved parties.
