Shaquille O’Neal, one of the famous NBA’s famous names, reportedly agreed to pay $ 1.8 million in the collective case filed by investors in relation to the collapse of the FTX crypto currency exchange. The case came to the agenda after O’Neal took part in the promotional advertisements before the collapse of FTX. The plaintiff claims that O’Neal appeared in FTX ads and misled investors.
Claims against O’Neal in the case
Former basketball player O’Neal, FTX commercial in front of the camera was in front of the $ 750 thousand dollars. However, the amount expected to pay as a result of the case was recorded as almost twice the amount of this amount. Together with O’neal, other famous names such as Tom Brady and Larry David were also involved in the promotions of the stock market and similarly sued. Investors, FTX’in promotion of the people in the stock market is reliable perception, he said.
In the collective case that started at the end of 2022, users who invested money until the end of the company’s activity with May 2019 were represented. Upon the developments, the parties decided to go to the path of reconciliation during the court process.
Shaquille O’Neal’s explanations and reconciliation details
Shaquille O’Neal argued that he was only an actor in advertisements during the process and said he had no deep interest in the incident. In a statement to the press after the collapse, he said:
I was just a paid spokesman for an ad.
If O’Neal accepts the compromise, it was announced that it would be exempted from all the allegations that may be directed to him within the scope of this case.
In addition, FTX will not be able to request any refund or contribution during the bankruptcy process for the compensation of O’Neal. According to the news published by CNBC, O’Neal will not have to accept any misdemeanor as a result of compromise.
FTX collapse and other developments
Sam Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison for defrauding customers and investors. The collapse of FTX created a significant concussion in the crypto money market and led to many investors to serious losses.
Bankman-Fried’s sentence can be reduced for more than four years depending on some conditions in the future. FTX’s rapid rise and sudden collapse has brought to the agenda to what extent the promotional activities of famous names in the sector are effective.
All these experiences revealed the magnitude of the impact of the famous names in crypto currency advertisements on investors. The legal processes related to advertisements once again brought the necessity of transparency in the sector.
The FTX case and the fact that Shaquille O’Neal went to compromise has re -opened the responsibilities of famous people in the industry about the advertising role. For investors, it is seen that the risks of investments made on the platforms where well -known figures are marketed should be taken into consideration. Currently, such compromises seem to affect the sector’s future advertising and promotional policies.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
