Shaquille O’Neal Settles FTX Lawsuit with $1.8M Payout

NBA legend Shaquille O’Neal has agreed to pay $1.8 million to settle a class-action lawsuit filed by investors of the collapsed cryptocurrency exchange FTX, according to multiple reports this week. The investors allege O’Neal misled them by endorsing the exchange in advertisements before its dramatic downfall in late 2022.

O’Neal, who reportedly earned $750,000 for appearing in an FTX commercial, has consistently claimed he was merely a paid spokesperson and not directly involved with the company’s operations. After FTX’s collapse, he stated he was “just a paid spokesperson for a commercial,” distancing himself from the exchange’s internal activities.

The lawsuit is part of broader legal action targeting several celebrities—including Tom Brady and Larry David—accused of promoting FTX without disclosing the associated risks. Filed on behalf of users who deposited funds between May 2019 and late 2022, the suit seeks compensation for losses incurred when the platform abruptly collapsed.

If the court approves the settlement, O’Neal will be released from any future legal claims tied to the case. He will not admit to any wrongdoing and will be barred from seeking reimbursement from the FTX bankruptcy estate.

FTX’s founder, Sam Bankman-Fried, was previously sentenced to 25 years in prison for orchestrating one of the largest financial frauds in recent history. His sentence may be reduced by more than four years under certain conditions.

The FTX case continues to spotlight the legal risks for celebrities endorsing crypto platforms, particularly as regulators crack down on misleading promotions. The $1.8 million settlement signals a notable move toward accountability, even for high-profile figures with limited involvement.