BREAKING: Shaquille O’Neal Settles FTX Lawsuit for $1.8 Million Amid Crypto Collapse
In a stunning turn of events, NBA legend Shaquille O’Neal has agreed to pay $1.8 million to settle a class action lawsuit stemming from his promotion of the now-defunct cryptocurrency exchange, FTX. The settlement, reached in April 2025 and disclosed in court filings in June, marks a significant development in the aftermath of FTX’s dramatic collapse in late 2022.
The Rise and Fall of FTX
FTX was once a leading cryptocurrency exchange, boasting high-profile endorsements from celebrities like Tom Brady, Stephen Curry, and Shaquille O’Neal. However, the platform’s rapid ascent was followed by an equally swift downfall. In late 2022, FTX filed for bankruptcy, revealing that founder Sam Bankman-Fried had misused customer funds, leading to billions in investor losses. Bankman-Fried was subsequently convicted and sentenced to 25 years in prison in March 2024 AP News.
Shaq’s Role and the Lawsuit
O’Neal, known for his larger-than-life persona both on and off the basketball court, featured prominently in FTX’s promotional campaigns. He was reportedly paid $750,000 for his endorsement, during which he expressed enthusiasm about partnering with the platform to make crypto accessible to everyone Awful Announcing. However, following FTX’s collapse, O’Neal admitted to not understanding cryptocurrency and distanced himself from the platform Awful Announcing.
The class action lawsuit, filed in 2022, accused O’Neal and other celebrities of promoting FTX as a trustworthy investment without conducting proper due diligence. The lawsuit alleged that these endorsements misled investors, contributing to their financial losses.
The Settlement Details
Under the terms of the settlement, O’Neal will pay $1.8 million to resolve all claims against him. The funds will cover legal fees, administrative costs, and payouts to eligible investors. Additionally, the agreement includes a broad release of future claims against O’Neal and bars him from seeking reimbursement from the FTX bankruptcy estate Awful Announcing.
While the settlement amount is substantial, it is relatively modest compared to the potential billions in damages that other celebrity endorsers, such as Tom Brady and Stephen Curry, may face. O’Neal’s decision to settle early may prove to be a strategic move, potentially shielding him from more significant financial repercussions down the line Front Office Sports.
Broader Implications
This case underscores the growing scrutiny of celebrity endorsements in the cryptocurrency space. As digital assets continue to gain popularity, regulators and investors are increasingly holding public figures accountable for promoting financial products without adequate transparency and due diligence.
For O’Neal, the settlement represents a significant financial commitment but also serves as a cautionary tale about the risks of associating with volatile and unregulated markets. As the crypto landscape evolves, this case may set a precedent for future legal actions involving celebrity endorsements and investor protection.
The settlement is pending final court approval, and O’Neal is expected to make the payment within 30 days of that approval
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