Shaquille O’Neal to pay $1.8 million to settle FTX investor lawsuit

Shaquille O'Neal has come to an agreement to pay $1.8 million to resolve allegations surrounding his promotion of the now-defunct cryptocurrency exchange FTX. The former NBA star, who had previously encouraged fans to trust in the platform, will settle the claims without admitting any wrongdoing. This settlement represents one of the earliest high-profile resolutions in the ongoing legal fallout following FTX's collapse. Filed in a federal court in Florida, the proposed agreement aims to close a class action lawsuit that accused O'Neal of portraying FTX as a reliable investment opportunity during live events and through social media, which allegedly contributed to the adoption of unregistered securities. The class action encompasses anyone who either deposited funds into FTX or held its proprietary token, FTT, from May 2019 up until late 2022. Should the overseeing judge give the green light to the settlement, the $1.8 million will cover all legal expenses, notices, administrative costs, and reimbursements to qualifying investors. Additionally, the deal includes a comprehensive release from future liabilities and prohibits O'Neal from seeking reimbursement from the FTX bankruptcy estate, making his payout both final and all-encompassing. In a statement, O'Neal's legal team expressed satisfaction in moving past this matter. Unlike other celebrity figures associated with FTX, such as Tom Brady, Gisele Bündchen, and Steph Curry, whose cases were largely dismissed, O'Neal faced prolonged legal challenges, including difficulties in serving him legal papers. Reports indicated that O'Neal secured a $15 million contract to continue with TNT's "Inside the NBA" back in February. Reflecting on his association with FTX, O'Neal previously stated to CNBC that he was merely a paid spokesperson. He was named in a class action suit that alleged FTX's representatives played active roles in aggressively marketing the company. Earlier interviews revealed O'Neal's stance on cryptocurrency, as he mentioned, "I don't understand it, so I will probably stay away from it until I get a full understanding of what it is," expressing skepticism by saying, "From my experience, it is too good to be true."