NBA legend Shaquille O'Neal has agreed to pay $1.8 million to settle a class-action lawsuit related to his promotion of the collapsed cryptocurrency exchange FTX. The settlement, reported by multiple sources, marks one of the first significant financial resolutions involving celebrities tied to the infamous crypto scandal that left countless investors with substantial losses.
The lawsuit stemmed from O'Neal's endorsement of FTX, which was once valued at billions before its dramatic collapse in November 2022. Investors accused the basketball icon and other high-profile figures of misleading them by promoting the platform without adequately disclosing risks. This legal action is part of a broader wave of litigation targeting celebrity endorsers of the failed exchange.
According to court filings, the settlement was finalized recently, with O'Neal agreeing to compensate victims of the FTX debacle. While earlier reports in 2024 mentioned a larger figure of $11 million tied to both FTX and his Astrals NFT project, the latest updates confirm the $1.8 million figure specifically for the FTX class action. The exact terms of the agreement remain partially confidential, as noted in various news outlets.
This development signals a potential end to the legal drama surrounding O'Neal's involvement with cryptocurrency promotions. The NBA Hall of Famer had previously been criticized for allegedly evading accountability, with some reports suggesting he was 'running' from the case before reaching this resolution. His decision to settle may set a precedent for other celebrities facing similar lawsuits.
The FTX collapse remains a cautionary tale in the volatile world of digital currencies, highlighting the risks of celebrity-driven endorsements in unregulated markets. Investors worldwide lost billions, and the fallout continues to impact the reputation of crypto exchanges. O'Neal's settlement underscores the growing scrutiny over influencer accountability in such financial ventures.
As the legal proceedings wind down for O'Neal, attention now turns to how this case might influence future regulations around cryptocurrency marketing. For now, the settlement offers some relief to affected investors, though it is only a fraction of the total losses incurred during the FTX crisis.
Andrew Lee
