Basketball legend Shaquille O’Neal has agreed to a $1.8 million settlement in a class-action lawsuit concerning his promotional activities for the collapsed cryptocurrency exchange FTX. The resolution highlights growing legal accountability for celebrity endorsements within the volatile crypto sector.
The lawsuit alleged O’Neal and other celebrities misled investors by endorsing FTX without proper disclosure of their financial arrangements, contributing to substantial investor losses following the exchange’s implosion. Court documents reveal FTX paid O’Neal nearly $750,000 for promotional services prior to its collapse.
O’Neal was formally served with legal papers at his residence on April 17 and subsequently appeared in federal court to address the allegations. The case also implicated other prominent figures including tennis star Naomi Osaka and NFL quarterback Trevor Lawrence, who similarly received compensation for FTX endorsements.
This settlement underscores intensified regulatory scrutiny of celebrity-backed cryptocurrency promotions. Legal experts warn the outcome establishes precedent for financial liability when public figures promote high-risk digital asset ventures without adequate risk disclosures to consumers.