Former NBA star Shaquille O’Neal has agreed to pay $1.8 million to resolve a class-action lawsuit tied to the downfall of cryptocurrency exchange FTX.
O’Neal, along with other celebrities like Tom Brady and Stephen Curry, was named in a 2022 lawsuit alleging that they promoted FTX as a safe and trustworthy investment through paid endorsements. However, the settlement deal specifically involves O’Neal.
FTX, once the world’s third-largest crypto exchange, faced massive losses amounting to billions and filed for bankruptcy protection. The company, based in the Bahamas, and its founder Sam Bankman-Fried have been under investigation by authorities for allegedly using customer funds without their consent to invest in other ventures.
Before its collapse, FTX heavily relied on high-profile sports and entertainment figures to market its platform. It held naming rights to a Formula One racing team and a Miami sports arena. Its advertising campaigns featured celebrities such as “Seinfeld” creator Larry David, NFL quarterback Tom Brady, basketball stars Shaquille O’Neal and Stephen Curry, and tennis player Naomi Osaka.
In March 2024, Bankman-Fried was sentenced to 25 years in prison. Shortly after, FTX announced in court that nearly all of its customers would be reimbursed for their losses.
Although the settlement with O’Neal was reached in April, the payment amount and details were made public this week in a filing with the U.S. District Court for the Southern District of Florida, Miami Division.
The settlement class covers anyone who deposited funds into FTX or purchased its FTT token between May 2019 and late 2022.
If approved by the court, the agreement will provide O’Neal with protection from future legal claims related to this matter and includes a clause preventing him from seeking reimbursement from FTX’s remaining assets.
The payment is expected to be made within 30 days after the settlement is finalized, according to the court documents.
