Shaquille O’Neal Settles FTX Lawsuit for $1,800,000

NBA legend Shaquille O’Neal has agreed to settle a lawsuit related to his endorsement of the now-defunct cryptocurrency exchange FTX. The settlement amount is $1,800,000. This development comes as part of the ongoing legal fallout from the collapse of FTX, which has seen numerous high-profile figures and celebrities entangled in legal battles due to their associations with the exchange.

The lawsuit against O’Neal stemmed from allegations that he promoted FTX without adequately disclosing the risks involved, leading to financial losses for investors who relied on his endorsement. The settlement marks a significant step in resolving the legal issues surrounding FTX's promotional activities and the responsibilities of those who endorsed the platform.

O’Neal’s decision to settle the lawsuit for $1,800,000 underscores the broader implications of the FTX scandal, which has raised questions about the transparency and accountability of cryptocurrency exchanges and their promotional strategies. The settlement serves as a reminder to celebrities and influencers about the importance of due diligence and full disclosure when endorsing financial products, particularly in the volatile and often unregulated world of cryptocurrency.

The resolution of this lawsuit is likely to have a ripple effect on other ongoing legal battles related to FTX. It sets a precedent for how similar cases might be handled in the future, emphasizing the need for clear communication and transparency in endorsements. As the cryptocurrency industry continues to evolve, it is crucial for all parties involved to prioritize ethical practices and consumer protection to maintain trust and integrity in the market.

O’Neal and other marquee celebrities – such as fellow NBA superstar Stephen Curry, NFL quarterbacks Tom Brady and Trevor Lawrence, MLB pitcher Shohei Ohtani, Shark Tank investor Kevin O’Leary, and supermodel Gisele Bündchen – were all accused of failing to perform due diligence before promoting FTX in a class action lawsuit filed in 2022. O’Neal, who received $750,000 to endorse the crypto exchange, first agreed to a settlement in April, though the amount at the time was undisclosed.

Bankman-Fried was found guilty of his crimes in 2023 and was sentenced to 25 years behind bars in 2024. The agreement between the parties is still pending approval from the court. The settlement amount will be paid within 30 days after the effective date of the settlement.