NBA icon Shaquille O’Neal has agreed to a $1.8 million settlement in a class action lawsuit stemming from his promotion of FTX, the now-defunct crypto exchange. The settlement, which awaits court approval, represents one of the first major resolutions among a group of celebrity endorsers who were named in lawsuits following FTX’s collapse.
The suit alleged that O’Neal misled investors through his participation in promotional campaigns for FTX and its native token, FTT. Although O’Neal previously downplayed his involvement—claiming limited understanding of crypto—plaintiffs pointed to his appearance in an ad where he stated he was “all in” on the platform.
Under the terms of the agreement, the settlement will cover legal fees, administrative costs, and partial compensation for FTX users who held funds or tokens between May 2019 and November 2022. O’Neal will be released from future liability connected to FTX but is barred from seeking reimbursement from the exchange’s bankruptcy estate.
While O’Neal did not admit wrongdoing, the timing of the settlement—just after a federal judge dismissed parts of related claims against other celebrity defendants—suggests a strategic decision to avoid further litigation.
Celebrity Fallout Grows as Crypto Promotions Come Under Fire
O’Neal’s settlement is part of a sweeping class action targeting celebrity endorsers accused of giving FTX undue credibility in the lead-up to its collapse. The lawsuit claims that public figures contributed to misleading the public by promoting the platform without adequate understanding or due diligence.
Other named defendants include NFL legend Tom Brady, tennis star Naomi Osaka, YouTubers Kevin Paffrath and Tom Nash, and investor Kevin O’Leary. While some figures, such as Paffrath and NFL quarterback Trevor Lawrence, have already reached confidential settlements, legal scrutiny continues across multiple cases.
O’Neal notably faced criticism last year for allegedly evading service in the case. Attorneys from the Moskowitz Law Firm reportedly waited outside a TNT studio in Atlanta to serve him legal documents. Court records indicate O’Neal was paid around $750,000 for his promotional efforts, which included appearing in televised ads for FTX. Though he portrayed himself as a firm supporter at the time, O’Neal later distanced himself, stating he didn’t fully understand crypto technology.
O’Neal’s Crypto Controversies Extend Beyond FTX
This is not Shaquille O’Neal’s only brush with crypto-related legal trouble. Earlier in 2024, he agreed to an $11 million settlement tied to the Astrals NFT project, a venture he had endorsed before allegedly abandoning it. Plaintiffs in that case claimed O’Neal failed to deliver on promises made to the NFT community, leaving backers with unmet expectations and financial losses.
The legal pressures on celebrity figures have intensified following the collapse of FTX—a once-$30 billion crypto empire that unraveled amid fraud allegations and mismanagement. FTX founder Sam Bankman-Fried was convicted and sentenced to 25 years in prison in March 2024.
Court documents and bankruptcy filings revealed FTX’s reckless spending, including a $135 million naming rights deal for the Miami Heat arena and a $6.5 million Super Bowl commercial. These extravagant expenditures became symbolic of the unchecked financial practices that ultimately brought down one of the crypto industry’s most prominent names.
Quick Facts
- Shaquille O’Neal will pay $1.8M to settle claims tied to FTX promotions.
- The settlement includes legal fees and partial reimbursement for FTX users.
- O’Neal will not admit wrongdoing and cannot seek reimbursement from the FTX estate.
- He previously settled an $11M lawsuit over the Astrals NFT project.
- Other FTX-related lawsuits against Tom Brady, Kevin O’Leary, and others remain ongoing.
