Shaquille O’Neal Settles FTX Lawsuit With $1.8 Million Payment

Basketball legend Shaquille O’Neal has agreed to pay nearly $2 million to settle a class-action lawsuit filed by investors of the defunct crypto exchange FTX. The proposed settlement, filed in the U.S. District Court for the Southern District of Florida, requires O’Neal to pay $1.8 million to affected FTX investors. This development comes after O’Neal appeared in an FTX commercial in 2022, just months before the exchange, founded by Sam Bankman-Fried, declared insolvency.

O’Neal’s legal team expressed relief at the resolution, stating, “We are pleased to have this matter behind us.” This settlement marks the first closure in a series of high-profile lawsuits related to FTX’s extensive crypto fraud scheme. Other celebrities, including Tom Brady, Stephen Curry, and Kevin O’Leary, are still facing allegations and legal battles stemming from their promotions of FTX before its collapse in November 2022.

O’Neal had previously clarified that he was merely a paid spokesperson for FTX and was not involved in the exchange’s fraudulent activities. His settlement comes as other celebrities, such as Gisele Bündchen, Tom Brady, Stephen Curry, and Kevin O’Leary, continue to navigate their own legal challenges. A Florida federal judge recently dismissed several claims against these individuals, but the legal proceedings are far from over.

Sam Bankman-Fried, the mastermind behind FTX, is currently serving a 25-year prison sentence for his role in the digital asset scheme. His trial in 2023 saw several key associates, including his ex-girlfriend Caroline Ellison, testify against him. Bankman-Fried is incarcerated at FCI Terminal Island in California, while Ellison is serving a two-year sentence at Danbury FCI in Connecticut after cooperating with federal authorities to secure a reduced sentence.

O’Neal’s settlement highlights the ongoing legal fallout from FTX’s collapse and the broader implications for celebrities and athletes who endorsed the crypto exchange. As more details emerge, it remains to be seen how other high-profile figures will navigate their legal challenges and what impact these settlements will have on the broader crypto industry.