Shaquille O’Neal Settles FTX Investor Lawsuit for $1.8 Million

Shaquille O’Neal has agreed to pay $1.8 million to settle allegations regarding his promotion of the now-defunct cryptocurrency exchange FTX. The retired NBA star, who previously encouraged fans to trust FTX, has chosen to resolve the claims without admitting any wrongdoing.

This settlement represents one of the highest-profile resolutions in the ongoing legal fallout from FTX’s collapse. The proposed settlement, submitted in a Florida federal court, aims to conclude a class-action lawsuit that accused O’Neal of misrepresenting FTX as a trustworthy investment opportunity.

The lawsuit particularly highlighted his promotional activities during live events and on social media, which allegedly contributed to the adoption of unregistered securities. The class of plaintiffs includes anyone who invested in FTX or held the exchange’s proprietary token, FTT, from May 2019 to late 2022.

If the overseeing judge approves the settlement, O’Neal’s payout will cover all associated legal fees, administrative costs, and compensations for eligible investors. The deal also includes a comprehensive release from any future liability and prevents O’Neal from seeking reimbursement from the FTX bankruptcy estate, making his financial commitment final and all-inclusive.

O’Neal’s legal troubles have persisted longer than those of other celebrity endorsers of FTX, such as Tom Brady and Gisele Bündchen, whose cases were largely dismissed. O’Neal’s team faced challenges in serving him legal papers, leading to his prolonged involvement in the case.

While O’Neal labeled himself as “just a paid spokesperson” for the platform, he previously stated he chose to stay away from cryptocurrency due to a lack of understanding, expressing skepticism about its legitimacy.