Shaquille O’Neal Agrees to $1.8 Million Settlement Over FTX Promotion Lawsuit
NBA Hall of Famer Shaquille O’Neal has agreed to pay $1.8 million to settle a class-action lawsuit linked to his promotion of the now-bankrupt cryptocurrency exchange FTX, according to multiple media reports.
The lawsuit, filed on behalf of investors who deposited funds into FTX between May 2019 and late 2022, accuses O’Neal of misleading the public by endorsing the exchange in widely circulated advertisements. O’Neal was among several high-profile celebrities—including Tom Brady and Larry David—named in the suit for promoting the platform prior to its collapse in late 2022.
Court documents reveal that O’Neal earned approximately $750,000 for appearing in an FTX commercial. However, under the terms of the proposed settlement, he will pay more than twice that amount. The agreement, if approved by the court, will release O’Neal from any future liability related to the lawsuit. He will not be permitted to seek reimbursement from the FTX bankruptcy estate and will not be required to admit any wrongdoing.
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O’Neal has previously stated that he was simply a paid actor in the commercial and had no deeper involvement with the company. “I was just a paid spokesperson for a commercial,” he said following FTX’s downfall.
FTX, once considered a leading crypto exchange, filed for bankruptcy in November 2022. Its founder and former CEO, Sam Bankman-Fried, was later convicted on multiple counts of fraud and sentenced to 25 years in federal prison. The judge recently hinted that Bankman-Fried’s sentence could be reduced by over four years under specific legal conditions.
The FTX lawsuit has cast a spotlight on the role of celebrity endorsements in the volatile world of digital assets, prompting regulators and investors alike to scrutinize promotional practices in the crypto space more closely.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
