Shaquille O’Neal Settles FTX Lawsuit Confidentially

Shaquille O’Neal has reached a confidential settlement with investors who sued him for promoting the now-defunct cryptocurrency exchange FTX. The terms of the settlement remain undisclosed until a motion for preliminary approval is filed by the plaintiffs. This development comes as part of a class-action lawsuit filed in November 2022, which alleges that O’Neal’s involvement in the “FTX: I Am All In” campaign contributed to misleading consumers into investing in the platform, which ultimately collapsed in late 2022.

The lawsuit seeks up to $21 billion in damages from various FTX promoters and insiders, including O’Neal. The legal proceedings surrounding O’Neal’s involvement gained significant attention when he was served court papers during a televised NBA playoff game at Miami’s Kaseya Center, formerly known as FTX Arena. Previous attempts to serve him, including at his Texas residence and through digital means, were either rejected or contested.

Judge K. Michael Moore, who is overseeing the case, had previously dismissed attempts at unconventional service, stressing the importance of adhering to proper legal standards due to the complexity and financial stakes involved. O’Neal is one of several celebrities named in the broader lawsuit against FTX promoters, as investors continue to seek compensation for losses incurred due to the platform’s failure.

This settlement marks a significant step in the ongoing legal battles surrounding FTX’s collapse. The confidential nature of the agreement means that the specifics of the settlement, including any financial compensation or terms of agreement, will not be publicly disclosed until the court approves the motion. This development underscores the broader implications of celebrity endorsements in the cryptocurrency industry and the potential legal consequences for those involved in promoting such platforms.