Shaq Cuts Losses—Settles FTX Lawsuit After Pumping Failed Crypto Empire

Basketball legend quietly inks deal to end class-action over his role promoting Sam Bankman-Fried’s house of cards. Another celebrity learns the hard way: when crypto collapses, the lawsuits stick around longer than the hype.

Shaqille O’Neal’s Crypto Promotion Lands Him in Legal Battle Over FTX Losses

O’Neal, a former NBA champion and now a businessman and media personality, was prominently featured in FTX’s marketing campaigns. He once claimed to be a “paid spokesperson,” urging fans to join the platform through high-visibility advertisements.

That involvement drew sharp criticism and ultimately legal scrutiny after the exchange filed for bankruptcy, leaving billions of dollars in customer funds unaccounted for.

Investors in the suit are reportedly seeking over $21b in damages. This is separate from the $9.2b estimated to be available through bankruptcy proceedings. The broader litigation names FTX insiders, outside advisers and celebrity endorsers. All lawsuits have been combined into multidistrict proceedings.

O’Neal Was Finally Served FTX Lawsuit at NBA Game After Months of Evasion

Serving O’Neal legal papers in the FTX case was unusually difficult. Plaintiffs’ lawyers reported several failed attempts to deliver the complaint. One process server claimed O’Neal was actively avoiding service. He was finally served at an NBA playoff game in Miami in April 2023.

A court has partially dismissed a class-action lawsuit against Shaquille O’Neal related to his involvement in the NFT project Astrals.#Shaquille #NFTshttps://t.co/o1Zd0JJL0x

This settlement comes after O’Neal resolved another class-action lawsuit. That case involved his Solana-based NFT project, Astrals. A Florida court approved an $11m deal. The settlement addressed claims that the NFTs were unregistered securities and were misrepresented to buyers.

O’Neal has not admitted wrongdoing in either case. However, the settlements reflect growing legal pressure on celebrities who used their platforms to endorse high-risk crypto ventures during the market’s boom period.