Former NBA Star Shaquille O'Neal Agrees to Pay $1.8M to Settle FTX Suit
Shaquille O’Neal will pay $1.8 million to settle a class action lawsuit related to his promotion of the collapsed crypto exchange FTX. The settlement, reached in principle in April, does not include an admission of wrongdoing. If approved, it will cover legal fees, administrative costs, and compensation for investors who held FTX’s token, FTT, from May 2019 to late 2022. O’Neal will also receive a release from future liability and cannot seek repayment from the FTX bankruptcy estate. The lawsuit claims O’Neal promoted unregistered securities and misrepresented FTX's legitimacy. Other celebrities involved include Tom Brady and Naomi Osaka, with some already settling. O’Neal was reportedly paid $750,000 for his promotional work with FTX. He also faces a separate $11 million settlement over promoting the Astrals NFT project. FTX collapsed in 2022 amid fraud allegations, leading to founder Sam Bankman-Fried's 25-year prison sentence in March 2024.
