NBA Icon Settles Investor Lawsuit Over FTX Endorsement
Basketball legend Shaquille O’Neal has agreed to pay $1.8 million to settle a class-action lawsuit brought by investors of the now-defunct cryptocurrency exchange FTX. The lawsuit alleges that O’Neal misled users by promoting the platform in advertising campaigns prior to its collapse.
The settlement amount is approximately $1 million more than the $750,000 O’Neal was reportedly paid for appearing in the FTX commercial.
The legal action, filed on behalf of users who deposited funds into FTX between May 2019 and late 2022, claims that celebrity endorsements helped lend legitimacy to what later proved to be a fraudulent operation.
Lawsuit Origin: Celebrity Endorsements Under Scrutiny
Shaquille O’Neal was one of several celebrities—including Tom Brady and Larry David—named in the lawsuit for their promotional roles. These endorsements came under fire after FTX collapsed in late 2022, triggering billions in customer losses and shaking confidence in celebrity-backed crypto advertising.
O’Neal has previously stated, “I was just a paid spokesperson for a commercial,” distancing himself from any direct involvement with FTX’s internal operations.
If approved by the court, the settlement will release O’Neal from all future claims related to the FTX lawsuit.
He will also not be allowed to seek reimbursement from the FTX bankruptcy estate and does not have to admit wrongdoing.
FTX Fallout Continues: Legal and Financial Repercussions
The FTX lawsuit is part of a wider fallout stemming from the exchange’s collapse. Founder Sam Bankman-Fried was sentenced to 25 years in prison for orchestrating one of the largest financial frauds in recent history. His sentence, however, may be reduced by more than four years depending on future appeals and cooperation.
The lawsuit highlights ongoing legal efforts to recover losses for investors affected by FTX’s collapse.
This case also underscores the growing legal risk for public figures endorsing financial products without proper due diligence.
Conclusion: Celebrity Accountability in Crypto Promotion
As the crypto market matures, legal actions like this signal that celebrity influencers can no longer escape scrutiny when promoting financial platforms. The $1.8 million settlement, though not an admission of guilt, reflects the growing expectation of responsibility for high-profile endorsers in the evolving digital asset space.