Shaquille O’Neal Agrees to $1.8M Settlement Over FTX Endorsement Lawsuit

Shaquille O’Neal has agreed to pay $1.8 million to resolve allegations tied to his promotion of the now-defunct cryptocurrency exchange FTX, marking a rare celebrity settlement in the wider legal fallout from the platform’s collapse.

Filed in a Florida federal court, the proposed agreement would end a class action lawsuit that accused the former NBA star of promoting FTX as a safe and reliable investment, particularly through high-profile events and social media campaigns.

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.