tl;dr
Shaquille O’Neal has agreed to pay $1.8 million to settle a class action lawsuit alleging he promoted the failed crypto exchange FTX. The settlement, pending court approval, covers legal fees, administrative costs, and compensation to investors who used FTX between May 2019 and late 2022. O’Neal den...
Shaquille O’Neal has agreed to pay $1.8 million to settle a class action lawsuit alleging he promoted the collapsed crypto exchange FTX without admitting any wrongdoing. The settlement, pending court approval, includes legal fees, administrative costs, and compensation for investors who used FTX between May 2019 and late 2022. In return, O’Neal receives a release from future liability related to the case.
The lawsuit accuses O’Neal of actively promoting FTX’s unregistered securities, notably appearing in a commercial where he declared himself “all in” on the platform, despite later saying he did not fully understand cryptocurrency. This legal action is part of a wider effort to hold celebrities accountable for endorsing FTX before its collapse, which resulted in billions of dollars in missing customer assets.
Other celebrities, including NFL players Tom Brady and Trevor Lawrence, tennis star Naomi Osaka, and investor Kevin O’Leary, face similar lawsuits. Some have already settled privately, while others continue to defend themselves. O’Neal was compensated roughly $750,000 for his promotional activities with FTX and had previously settled an $11 million lawsuit over promoting the Astrals NFT project, which plaintiffs claimed he abandoned.
FTX’s downfall in 2022 stemmed from fraud and mismanagement accusations against founder Sam Bankman-Fried, who was sentenced to 25 years in prison. The company’s bankruptcy documents revealed extravagant marketing expenses, such as a $135 million naming rights deal for the Miami Heat’s arena and more than $6 million spent on a Super Bowl commercial, highlighting the scale of FTX’s promotional efforts before its collapse.