Shaquille O’Neal Settles Class-Action Lawsuit Over FTX Promotion

Shaquille O’Neal has reached a settlement with investors who say they lost money in the collapse of crypto exchange FTX, marking the latest legal development in a case that drew widespread attention to the role of celebrity endorsements in the crypto industry.

The proposed classwide settlement, disclosed in a filing with the US District Court for the Southern District of Florida, remains confidential for now.

Bloomberg reported Thursday that the settlement amount will be revealed when the plaintiffs seek preliminary approval from the court. O’Neal is one of several public figures named in lawsuits over their promotion of FTX before its dramatic collapse in late 2022.

Shaqille O’Neal’s Crypto Promotion Lands Him in Legal Battle Over FTX Losses

O’Neal, a former NBA champion and now a businessman and media personality, was prominently featured in FTX’s marketing campaigns. He once claimed to be a “paid spokesperson,” urging fans to join the platform through high-visibility advertisements.

That involvement drew sharp criticism and ultimately legal scrutiny after the exchange filed for bankruptcy, leaving billions of dollars in customer funds unaccounted for.

Investors in the suit are reportedly seeking over $21b in damages. This is separate from the $9.2b estimated to be available through bankruptcy proceedings. The broader litigation names FTX insiders, outside advisers and celebrity endorsers. All lawsuits have been combined into multidistrict proceedings.

O’Neal Was Finally Served FTX Lawsuit at NBA Game After Months of Evasion

Serving O’Neal legal papers in the FTX case was unusually difficult. Plaintiffs’ lawyers reported several failed attempts to deliver the complaint. One process server claimed O’Neal was actively avoiding service. He was finally served at an NBA playoff game in Miami in April 2023.

👨‍⚖️ A court has partially dismissed a class-action lawsuit against Shaquille O'Neal related to his involvement in the NFT project Astrals.#Shaquille #NFTshttps://t.co/o1Zd0JJL0x

— Cryptonews.com (@cryptonews) August 19, 2024

This settlement comes after O’Neal resolved another class-action lawsuit. That case involved his Solana-based NFT project, Astrals. A Florida court approved an $11m deal. The settlement addressed claims that the NFTs were unregistered securities and were misrepresented to buyers.

O’Neal has not admitted wrongdoing in either case. However, the settlements reflect growing legal pressure on celebrities who used their platforms to endorse high-risk crypto ventures during the market’s boom period.