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. This payment closes a legal case accusing the former NBA star of endorsing FTX as a safe platform.
O’Neal was among several celebrities involved in the high-profile FTX litigation, including Tom Brady, Gisele Bündchen, Steph Curry, Naomi Osaka, and Larry David. While some claims against other endorsers have been dismissed, O’Neal’s settlement is a notable development.
The lawsuit alleged that O’Neal promoted FTX through marketing campaigns and social media posts, receiving $750,000 in return. FTX also sponsored his music festival, Shaq’s Fun House. According to court documents, plaintiffs sought relief by highlighting his role as a paid influencer presenting FTX as a legitimate alternative to other exchanges.
The initial settlement was reached in November 2023 and finalized in June 2024 in the U.S. District Court for the Southern District of Florida. O’Neal must pay the settlement amount within 30 days.
FTX filed for bankruptcy in November 2022 after revelations that customer assets were used as collateral to fund trading activities at its sister company, Alameda Research. The crash prompted lawsuits against FTX’s founder Sam Bankman-Fried, his associates, and celebrity endorsers.
O’Neal’s settlement signals a warning to celebrities who promoted crypto projects without fully appreciating or disclosing associated risks. In 2021, O’Neal admitted to CNBC that he did not understand cryptocurrencies and would avoid them until better informed, yet he still endorsed FTX.
Regulators like the SEC and FTC have since increased enforcement against undisclosed paid crypto endorsements, emphasizing transparency and financial literacy. Celebrities promoting crypto ventures are now expected to be accountable even if the ventures fail.
This settlement is not O’Neal’s only crypto-related legal issue. In 2023, he paid $11 million to settle a lawsuit over Astrals, a failed NFT project he co-founded, which promised a metaverse experience but left investors unsupported after FTX’s downfall.
With over $12 million in crypto-related settlements, O’Neal may reconsider further involvement in cryptocurrency endorsements.