Quick overview

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Shaquille O’Neal has reached a rare celebrity settlement in the broader legal ramifications surrounding the platform’s demise, and will pay $1.08 million to settle claims that he promoted the now-defunct cryptocurrency exchange FTX.

The proposed agreement was filed in a federal court in Florida and aims to end a class action lawsuit that accused the former NBA player of using social media campaigns and high-profile events to promote FTX as a secure and reliable investment.

According to the lawsuit, the plaintiffs are FTX users who made deposits or purchased FTT, the exchange’s proprietary token, between May 2019 and late 2022. During this time, the business actively broadened its audience by utilizing celebrity endorsements.

Unlike other endorsers such as Naomi Osaka, Tom Brady, and Steph Curry, whose cases were largely dismissed or unresolved, O’Neal remained legally involved following a lengthy effort to serve him with court documents. O’Neal denies any wrongdoing, but the proposed settlement implies otherwise.

FTX collapsed in 2022 after Sam Bankman-Fried was accused of embezzling billions of dollars in client deposits. Although the company has since stated that it will be able to reimburse most users, Bankman-Fried received a 25-year prison sentence in March 2024.

O’Neal had previously distanced himself from cryptocurrency markets, stating in interviews that he was merely a paid spokesperson and didn’t understand the technology. However, the lawsuit focused on his involvement in promotional materials, particularly in the later stages of FTX, claiming that his celebrity endorsement contributed to the public’s perception of FTX as a credible investment.

If the court approves the deal, it will resolve O’Neal’s involvement and set a precedent for future scrutiny of prominent celebrity endorsements in the cryptocurrency sector. Meanwhile, the settlement amount must be paid within 30 days.