Shaquille O’Neal Settles FTX Endorsement Lawsuit for $1.8M – Crypto Celebs Under Fire
Basketball legend Shaq coughs up $1.8 million to make regulators go away—proving even giants stumble in crypto''s regulatory minefield.
When celebs meet blockchain...
The NBA icon becomes the latest star to learn the hard way: endorsing shady crypto ventures might pay upfront, but the lawsuits arrive FedEx overnight. His settlement? Just a rounding error for FTX''s vaporized billions—but a stark warning for other moon-bound influencers.
Bonus jab: Another win for ''financial advisors'' who recommended FTX as ''the next Berkshire Hathaway.''
All-Inclusive Deal
The plaintiffs in the case are FTX users who deposited funds or purchased the exchange’s proprietary token, FTT, between May 2019 and late 2022. During this period, the company had aggressively expanded its reach through celebrity endorsements. Unlike other endorsers such as Tom Brady, Steph Curry, and Naomi Osaka, whose cases were mostly dismissed or unresolved, O’Neal remained legally entangled after a prolonged effort to serve him court papers.
While O’Neal denies any wrongdoing, the proposed settlement is structured to be final. The entire amount will cover attorney fees, administrative costs, and payments to affected investors. The agreement also prevents him from pursuing compensation from the FTX bankruptcy estate – a clause that effectively severs any future legal or financial entanglement with the case.
FTX, once the world’s third-largest crypto exchange, imploded in 2022 amid allegations that its founder, Sam Bankman-Fried, misused billions in customer deposits. In March 2024, Bankman-Fried was sentenced to 25 years in prison, while the company has since claimed that it will be able to repay most users.
Final Chapter
O’Neal had previously distanced himself from crypto markets, stating in interviews that he lacked understanding of the technology and was simply a paid spokesperson. Despite this, his involvement in promotional content, especially during FTX’s final stages, became a central element in the lawsuit, which argued that his celebrity endorsement contributed to the public perception of FTX as a legitimate investment.
The deal would not only bring closure to O’Neal’s involvement but also establish a precedent for how high-profile celebrity endorsements in the crypto industry may be scrutinized moving forward, if approved by the court. Meanwhile, the payment is due within 30 days of judicial approval, closing a chapter on O’Neal’s ties to one of crypto’s most notorious failures.
