NBA legend Shaquille O’Neal has agreed to pay $1.8 million to settle a lawsuit alleging he misled investors by promoting now-bankrupt crypto exchange FTX. The settlement, if approved, will resolve a class action case filed in Florida federal court.
What Happened?
The collapse of FTX in late 2022 shook the entire cryptocurrency market. O’Neal, along with other celebrities, had endorsed FTX as a legitimate platform for crypto trading. He appeared in commercials, live events, and social media promotions urging fans to trust the platform.
But behind the scenes, FTX was allegedly offering unregistered securities and engaging in fraudulent activity—leading to billions in customer losses.
Despite initially denying wrongdoing, Shaq’s team has now moved to settle the case without admitting liability.
“We are pleased to have this matter behind us,” said Shaq’s legal counsel.
What Does the $1.8 Million Cover?
Shaq’s proposed $1.8 million payout will cover:
- Legal fees
- Administrative costs
- Investor payouts
This settlement also protects O’Neal from future liability and bars him from seeking repayment from FTX.
The class action includes all investors and holders of FTX’s native tokens, including FTT, between May 2019 and late 2022.
Shaq’s Role and Previous Claims
While other celebrity endorsers like Tom Brady, Steph Curry, and Gisele Bündchen saw their cases dismissed, Shaq remained under legal fire well into 2023.
In his defense, O’Neal said in a 2022 interview:
“I was just a paid spokesperson for a commercial.”
However, plaintiffs argued that he and others “assisted in promoting an aggressive market” of unregistered securities.
This isn’t Shaq’s first crypto-related settlement—he previously paid $11 million to resolve claims over his Astrals NFT project.
Background: FTX and Sam Bankman-Fried
FTX, once a crypto powerhouse, imploded in November 2022. Its founder Sam Bankman-Fried was later sentenced to 25 years in federal prison and ordered to forfeit $11 billion for orchestrating one of the biggest financial frauds in U.S. history.
FTX’s downfall revealed how high-profile endorsements can lure investors into risky platforms—many of which later collapsed.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
FTX collapsed in November 2022 after it was revealed that the company misused customer funds and faced a massive liquidity crisis. This led to bankruptcy, legal investigations, and major losses for users and investors.
Shaquille O’Neal agreed to pay $1.8 million to settle a class-action lawsuit alleging he misled investors by promoting the now-bankrupt crypto exchange FTX.
Other celebrities like Tom Brady, Steph Curry, and Gisele Bündchen also faced lawsuits for promoting FTX, though many had their cases dismissed unlike O’Neal’s.
