Retired footballer joins boxer, actor and socialite on the gravy train to endorse ICOs’ token sales

Luis Figo, the retired Portuguese midfielder considered one of his generation’s greatest footballers, has become the latest celebrity to endorse an initial coin offering (ICO).

Figo, whose record 127 appearances for the Portuguese national team was broken only by Cristiano Ronaldo, was appointed the ambassador of STRYKZ, a token by Berlin-based Stryking Entertainment for football fans to use in fantasy football matches, on April 11.

Figo, 45, joins Brazilian football star Ronaldinho, English footballer Michael Owen, boxer Manny Pacquiao, socialite Paris Hilton and Academy Award-winning actor Jamie Foxx among the list of celebrities who’re lending their fame and their legion of fans to token sales.

Such endorsements may be unlawful - at least in the United States - if the if the celebrities don’t “disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement,” according to a warning last year by the US Securities & Exchange Commission (SEC).

“There are risks that some celebrities may not be aware of,” said Hong Kong-based Ben Yates, lawyer at international law firm RPC, who advises on fintech and cybersecurity. “When a celebrity becomes associated with, or endorses a token sale that may legally constitute an offer of securities, they could incur legal liability.”

Under Hong Kong’s securities law, the Securities and Futures Commission (SFC) could potentially take action against overseas-based ICOs that target Hong Kong investors. Last month, the SFC ordered Black Cell, based in The Philippines, to suspend its ICO and return all tokens to investors.