Basketball legend Shaquille O’Neal has agreed to a $1.8 million settlement in the class action lawsuit concerning his promotion of collapsed cryptocurrency exchange FTX. The resolution clears O’Neal of future liabilities while contributing to restitution efforts for affected investors.
The lawsuit alleged O’Neal misled investors through his participation in FTX’s promotional campaigns, underscoring the risks associated with celebrity endorsements in the cryptocurrency sector. FTX’s 2022 collapse, driven by fraud and mismanagement, remains one of crypto’s most significant scandals, with founder Sam Bankman-Fried currently serving a 25-year prison sentence.
Concurrently, FTX’s bankruptcy estate continues creditor repayment initiatives, having distributed over $1.2 billion to claimants. Recent efforts include a partnership with Payoneer to streamline settlement processes for international users.
This settlement highlights increasing legal accountability for celebrity promoters in cryptocurrency and amplifies calls for stronger regulatory frameworks to protect investors from misleading endorsements.