FTX Settles 1.8 Million Lawsuit With Shaquille O’Neal

FTX, the collapsed crypto exchange, is actively pursuing multiple legal and financial strategies to address the fallout from its demise. The exchange is focusing on securing repayment options for its customers, settling lawsuits with celebrities, and engaging in a high-stakes legal battle with rival exchange Binance.

One of the recent developments involves NBA legend Shaquille O’Neal, who has agreed to pay 1.8 million to settle a lawsuit related to his endorsement of FTX. The lawsuit, filed in a federal court, accused O’Neal of defrauding investors through his marketing and sponsorship activities, including the FTX-sponsored event Shaq’s Fun House. This settlement is part of a series of high-profile crypto-related cases that O’Neal has resolved, including an earlier 11 million case concerning NFT sales.

In addition to settling celebrity lawsuits, FTX has integrated Payoneer as one of its payout partners, alongside Kraken and BitGo. International customer repayments will be processed through Payoneer starting after May 30, 2025. Customers opting for this service will receive payments in their local currencies rather than US dollars. To be eligible for repayment, customers must complete identity verification, submit tax documents, and create an account through the official FTX Customer Portal. Only those registered on the official registry following a 21-day notice will be able to participate in the payout process.

Meanwhile, Binance is pushing back against a 1.76 billion lawsuit filed by the FTX estate. The lawsuit, filed in Delaware Bankruptcy Court, alleges that Binance received large sums in crypto assets during a 2021 buyback deal funded with customer deposits. Binance’s legal team argues that the claims are legally flawed and lack evidence of insolvency at the time of the transaction. FTX, on the other hand, contends that the transaction was inappropriate and is seeking to recover the funds as part of its bankruptcy restoration process. Binance counters that FTX operated normally for over a year after the transaction and that its collapse was due to internal mismanagement rather than external transactions.

As the legal battles intensify, FTX appears to be focused on reclaiming assets and prosecuting others involved in the collapse. This effort is aimed at resolving one of the most complex and significant collapses in the history of the crypto industry. The outcome of these legal and financial maneuvers will have far-reaching implications for the future of FTX and the broader crypto landscape.