• O’Neal has agreed to a $1.8 million payout to resolve allegations he misled investors through FTX promotion.
• The sum exceeds what he was originally paid and forms part of a wave of settlements involving crypto and NFT endorsements.
Shaquille O’Neal settles FTX case for $1.8M
Shaquille O’Neal, the eight-time NBA champion and media personality, has consented to pay $1.8 million to settle claims in a class action lawsuit brought by investors in FTX. The retired big man was named in a broader multi-district lawsuit filed in November 2022, which accused him of promoting FTX via social media, its association with his music festival Shaq’s Fun House, and other public endorsements.
Earlier reports indicated O’Neal was paid around $750,000 for his promotional efforts, meaning the settlement exceeds his original compensation for the work . Covered by legal costs and administrative fees, if approved by the court, this amount frees him from further liability—and prevents him from seeking reimbursement from FTX’s bankruptcy estate .
O’Neal had previously expressed limited crypto knowledge, stating in December 2022 that he avoided investing in cryptocurrency due to not understanding it. Earlier this year, he also settled an $11 million lawsuit related to his promotion of the Astrals NFT project.
Also read:FTX sues Binance and its former CEO Zhao for $1.76B
Also read:US advocates leniency for FTX’s Caroline Ellison, citing aid against Bankman-Fried
Why it’s important
The settlement arrives just before a Florida federal judge largely dismissed claims against celebrity endorsers under federal securities law—though state law allegations remain active. According to plaintiffs’ counsel, O’Neal acted swiftly to avoid potentially steeper liabilities had the case proceeded.
O’Neal’s hefty $1.8 million outlay, exceeding his FTX fees by more than $1 million and vastly eclipsing his NFT settlement, emphasises the financial pressures faced by those who promoted highrisk, unregulated crypto offerings. Experts posit the payout is a strategic win, capping risk and avoiding protracted litigation.
With damages sought across the broader celebrity group potentially running into tens of billions, O’Neal’s settlement could set a precedent—offering a possible template for other figures wanting to avoid drawn-out court battles .
