Shaquille O’Neal Settles $1.8 Million Lawsuit Over FTX Promotions

NEW YORK, New York — Former NBA star Shaquille O'Neal has agreed to pay $1.8 million to settle allegations that he misled investors while promoting the now-defunct cryptocurrency exchange FTX. The settlement comes after a class-action lawsuit was filed against him and other celebrities in federal court in Florida.

O’Neal, who promoted FTX as a credible investment option through live events and social media, was named in the lawsuit along with other prominent figures, including Tom Brady and Steph Curry. The allegations claim that O’Neal’s promotion of FTX contributed to its adoption as an unregistered security, attracting many investors.

The proposed deal, filed in court on June 12, stipulates that O’Neal’s payout will cover legal fees, notice and administrative costs, as well as payments to eligible investors. Importantly, the agreement releases him from future liability, meaning he will not be held responsible for further claims related to FTX promotions.

O’Neal’s legal representative issued a statement, saying, “We are pleased to have this matter behind us.” This resolution comes in contrast to the situations faced by other celebrity endorsers, many of whom have had their claims dismissed.

The lawsuit class includes anyone who deposited funds in FTX or held its token, FTT, from May 2019 to late 2022. Court documents reveal that individual payouts to investors could be minimal, potentially less than $2 each, given the large number of claimants.

O’Neal had previously received approximately $750,000 for his promotional work with FTX. He later distanced himself from cryptocurrency investments, stating, “I don’t understand it, so I will probably stay away from it until I get a full understanding of what it is.”

The downfall of FTX was marked by its shocking collapse in late 2022, leading to a bankruptcy filing and the arrest of its founder, Sam Bankman-Fried, on fraud charges. He received a 25-year prison sentence following his conviction.