Cristiano Ronaldo is being subjected to a class action lawsuit in the United States due to his support of Binance, the biggest cryptocurrency exchange on the globe.
The plaintiffs allege that due to his endorsement, they incurred losses from their investments.
They are claiming damages in excess of $1bn (£790m).
The BBC has sought comments from both Ronaldo's management company and Binance.
In November 2022, Binance declared the launch of its first "CR7" collection of non-fungible tokens (NFTs) in partnership with Ronaldo. The footballer remarked that the tokens would be a means of rewarding fans "for all the years of support".
NFTs are digital assets that can be bought and sold, but have no physical manifestation. They are usually used to indicate ownership of digital items like images or videos.
"CR7" is a label that utilizes Ronaldo's initials and shirt number; it has been implemented for a variety of merchandise, such as shoes to fragrances, and has contributed to his success as one of the most affluent athletes worldwide.
In a social media video, Ronaldo informed potential investors that they were "going to revolutionize the NFT sector and elevate football to the next stage".
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In November 2022, the most affordable NFT from the collection debuted at $77 - however, by November of the following year, its cost had ballooned to roughly $1.
The claimants maintain that Ronaldo's endorsement of Binance caused a dramatic surge in searches for the company operating in the Cayman Islands, with a fivefold increase in activity.
It has been claimed that the company was adopted to be utilized for the purpose of investing in unspecified securities - notably, Binance's BNB cryptocurrency.
As reported by the US Securities and Exchanges Commission (SEC), those assets may be classified as securities and, due to this, celebrities promoting them must abide by US legislation.
SEC Chair Gary Gensler has previously indicated that celebrities must "make public the source and amount of any compensation received for promoting investments in securities".
He warned that investors should be cautious when celebrities endorse investment opportunities, such as crypto-asset securities, and take the time to investigate if they are suitable. Additionally, he cautioned that investors should understand why the celebrity is making the endorsement.
The claimants claim that Ronaldo failed to reveal how much he was receiving in compensation.
Nigel Green, the head of DeVere Group consultancy, declared that the troubles at the core of the case affected more than simply one football player.
He noted that it was essential to acknowledge that simply blaming Ronaldo does not give a full understanding of the complicated matter.
Rather, consideration should be given to international regulators who have not been prompt in setting forth precise instructions for this transforming financial terrain.
Ronaldo has suggested that he and Binance have designs on collaborating again in the near future, alluding to the fact that they are in the process of forming an agreement in a recent post on social media which mentioned that they are "cooking something up".
Neither of them have replied to the BBC's inquiries for a statement.
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A week after the US Justice Department demanded $4.3bn (£3.4bn) in fines and surrender, a class action suit was submitted.
It charged Binance with allowing users to circumvent sanctions globally, allowing criminal and terrorist groups to transfer money with ease.
Changpeng Zhao, the chief executive of the company, resigned after confessing to money-laundering offenses.
On the same day, lawsuits in the form of a class action were filed against Major League Baseball, Formula 1 and Mercedes-Benz for their support of the bankrupt crypto-exchange FTX.
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