NBA legend Shaquille O’Neal has agreed to pay a $1.8 million settlement to resolve a class-action lawsuit related to his promotion of the now-defunct cryptocurrency exchange FTX. The lawsuit, filed in a Florida federal court, accused O’Neal of misleading investors by endorsing FTX as a safe and reliable platform, primarily through high-profile events and social media campaigns.
The plaintiffs are former FTX users who invested or purchased FTX’s proprietary token, FTT, between May 2019 and late 2022. During this period, FTX aggressively expanded its reach using celebrity endorsements, including O’Neal. Unlike other endorsers such as Tom Brady and Steph Curry, whose cases were mostly dismissed or unresolved, O’Neal remained legally involved after extended efforts to serve him court documents.
O’Neal denies any wrongdoing but agreed to the settlement, which will cover attorney fees, administrative costs, and compensation to affected investors. The deal also prevents him from seeking reimbursement from the FTX bankruptcy estate, effectively severing any future legal or financial ties to the case. The payment must be made within 30 days of court approval.
FTX was once the world’s third-largest crypto exchange before collapsing in 2022 amid allegations of fund misappropriation by its founder, Sam Bankman-Fried, who was sentenced to 25 years in prison for fraud. The settlement closes a chapter on O’Neal’s involvement and sets a precedent for the scrutiny of celebrity endorsements in the crypto industry.