The past few months have been really hard for the cryptocurrency geeks, and a little harder for Shaquille O’Neal.
The former NBA superstar has long been associated with the decentralized digital currency landscape. He reportedly purchased some, spent some, and endorsed some.
However, the latest development on his crypto venture has come with a hefty cost.
O’Neal has agreed to pay $1.8 million to settle a class action lawsuit connected to the collapse of cryptocurrency exchange FTX.
The lawsuit, filed in 2022, accuses O’Neal and other celebrities of promoting FTX as a reliable investment through paid endorsements. It includes names like Tom Brady and Stephen Curry. The settlement specifically pertains to O’Neal.
FTX, once the third-largest cryptocurrency exchange, faced bankruptcy after suffering significant financial losses and allegations of mismanaging depositors’ funds.
🚨 JUST IN: Shaquille O’Neal agrees to pay $1.8M to settle FTX lawsuit, one of the first major celebrity settlements over the collapsed crypto exchange. pic.twitter.com/zMLjfTXcS6
— CryptosRus (@CryptosR_Us) June 13, 2025
Click on ‘Follow Us’ and get notified of the most viral NBA stories via Google! Follow Us
Its founder, Sam Bankman-Fried, was sentenced to 25 years in prison in March 2024, following investigations by both state and federal authorities. FTX had previously used various high-profile celebrities to endorse its brand, including Larry David, Brady, O’Neal, Curry, and Naomi Osaka.
The proposed settlement, reached in April, is currently awaiting approval from the U.S. District Court in Florida. It indicates that O’Neal will receive protection from future claims and won’t be able to seek reimbursement from the FTX estate.
The settlement class includes anyone who deposited money into FTX or purchased its FTT token between May 2019 and late 2022. The payment is expected to be made within 30 days of the settlement’s finalization.
FTX’s Trouble Might Not End Despite Shaquille O’Neal’s Settlement
The ongoing FTX legal saga is getting more interesting, especially with Shaquille O’Neal recently settling his part of the case.
Back in late April, Shaq managed to reach a settlement just before a judge issued an order in early May that dismissed many claims against various celebrity and athlete endorsers.
However, a few significant claims are still very much in play, including one under Florida law that deals with the sale of unregistered securities.
According to attorney Moskowitz, O’Neal really timed his exit well, settling just days before the ruling came out.
ICYMI: Shaquille O’Neal has settled a $21B class-action lawsuit over his promotion of FTX, accused by plaintiffs of being a “Ponzi scheme.”
— Coin Bureau (@coinbureau) April 24, 2025
The 🏀 NBA star’s confidential deal marks a key development in the ongoing case against celebrity endorsers. pic.twitter.com/gx8A57FsY5
He ended up giving a good deal by refunding almost $750,000 that he received for promoting FTX. Others in the hot seat include big names like Gisele Bündchen, Shohei Ohtani, Udonis Haslem, and comedian Larry David.
If they decide to fight this in court, it could potentially cost them billions of dollars.
Moskowitz mentioned that some celebrities weren’t even willing to have a conversation about settling, which shows how serious the stakes are. The amended complaint, which is over 500 pages long, argues that these endorsers can’t just shrug off the allegations.
It claims that many of them got the warning about the legal risks but continued promoting FTX for their financial benefit.
Also Read: REPORT: Shaq Has Been ‘Hiding Inside His Home’ In An Effort To Avoid Crypto Lawsuit
