Shaquille O'Neal Settles FTX Lawsuit: Ex-NBA Star Faces $1.8M Payout in Crypto Endorsement Controversy

Shaquille O'Neal Settles FTX Lawsuit, But Crypto Endorsement Woes Linger

Retired NBA Star Pays $1.8M to Put FTX Lawsuit Behind Him

Shaquille O'Neal has agreed to pay $1.8 million to settle a class-action lawsuit regarding his promotion of the collapsed cryptocurrency exchange FTX. The basketball legend initially reached this settlement in principle back in April without admitting any wrongdoing.

If approved by the court, this agreement would resolve the lawsuit completely, covering legal fees, administrative costs, and compensation for investors who held FTX's FTT token or deposited funds on the platform between May 2019 and late 2022.

The settlement also provides O'Neal with protection from future liability and prevents him from seeking repayment from FTX's bankruptcy estate. His legal team stated they're "pleased to have this matter behind us."

Celebrities Facing Scrutiny for FTX Endorsements

The lawsuit alleged O'Neal "actively participated" in promoting FTX's unregistered securities offerings. He famously appeared in an FTX commercial declaring he was "all in" on the platform, though he later admitted he didn't fully understand cryptocurrency.

This case represents part of a larger legal effort to hold celebrities accountable for endorsing FTX before its dramatic collapse in late 2022. Other high-profile figures including Tom Brady, Naomi Osaka, and Kevin O'Leary have faced similar lawsuits, with some already reaching undisclosed settlements.

FTX Bankruptcy Saga Continues

The FTX bankruptcy estate recently distributed $1.2 billion to smaller claim holders as part of ongoing efforts to help former customers recover funds. This marks just one step in the complex process of unwinding the failed crypto exchange.

In related legal developments, Binance has moved to dismiss a $1.76 billion lawsuit from the FTX estate, calling the complaint "legally deficient" and arguing it fails to connect the exchange or its former CEO Changpeng Zhao to FTX's collapse.

As the FTX case continues, the repercussions extend across the cryptocurrency industry, with celebrity endorsers like O'Neal facing legal consequences for their association with the platform. These high-profile cases serve as a warning about the risks of celebrity-driven crypto promotions.