YEREVAN (CoinChapter.com) — Shaquille O’Neal Reaches Settlement with FTX Investors Over Promotion of Failed Crypto Exchange
Shaquille O’Neal reached a confidential settlement with FTX investors who accused him of promoting the failed crypto exchange. The deal was confirmed in an April 23 filing from the U.S. District Court for the Southern District of Florida. Investors filed the case as part of a broader class-action lawsuit targeting celebrity FTX promoters.
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The settlement terms have not been released. According to court documents, investors will ask for preliminary approval before full details become public. O’Neal was one of several celebrities named in the FTX lawsuit, which seeks up to $21 billion in damages. This figure surpasses the $9.2 billion currently available from FTX’s bankruptcy proceedings.
The complaint said celebrity endorsements like O’Neal’s contributed to investor losses by boosting the credibility of FTX before it collapsed in 2022.
Lawyers Struggled to Serve O’Neal Legal Documents
FTX investors faced months of difficulty trying to serve Shaquille O’Neal with the lawsuit. Legal teams used several methods, including attempts during NBA games and visits to his residences. The delays became public after lawyers said O’Neal was “running from the lawsuit,” according to official filings.
Eventually, lawyers confirmed successful service. The court accepted that O’Neal had received the legal documents in a manner that met legal standards. His settlement came months after this issue was resolved.
The challenges around serving O’Neal slowed early progress in the case. However, his name remained in the complaint, alongside several other well-known public figures.
The FTX Lawsuit and Other Celebrity Promoters
The FTX lawsuit targets multiple celebrities for their alleged roles in promoting the exchange. These include Tom Brady, Gisele Bündchen, Kevin O’Leary, Naomi Osaka, David Ortiz, and Udonis Haslem. Lawyers say these individuals appeared in ads or public statements tied to FTX and its services. They claim the endorsements misled retail investors by implying FTX was trustworthy. Many of the promotional videos aired before the company filed for bankruptcy in November 2022.
The class-action complaint forms part of a multidistrict litigation in federal court. It combines several related lawsuits filed across different states.
Shaquille O’Neal Also Settled Astrals NFT Lawsuit for $11 Million
Alongside the FTX lawsuit, Shaquille O’Neal recently paid $11 million to settle a separate class-action case involving the Astrals NFT project. This project runs on the Solana blockchain and features 10,000 NFTs, a metaverse space called Astralworld, and a DAO using the Galaxy token for governance.
Plaintiffs said O’Neal promoted Astrals NFTs as investments without registering them as securities. They claim he failed to disclose key risks to potential buyers.
In May 2023, legal teams served O’Neal with the Astrals NFT lawsuit during an NBA game at Kaseya Center, previously named FTX Arena. In August 2024, a Miami federal court ruled that O’Neal must face several unresolved claims, allowing part of the case to continue.
The Astrals case marked the second major legal challenge tied to O’Neal’s crypto promotions within two years. Both cases have now led to settlements, though only the Astrals payout amount is public.