Shaquille O’Neal Reaches $1.8M Settlement in FTX Promotion Lawsuit

NBA Hall of Famer Shaquille O’Neal has agreed to pay $1.8 million to settle a class-action lawsuit brought by investors in the now-defunct crypto exchange FTX, multiple media outlets reported this week.

The lawsuit, filed on behalf of FTX users who deposited funds between May 2019 and late 2022, alleged that O’Neal misled investors by promoting the platform in advertising campaigns. Plaintiffs claimed the basketball legend’s participation in FTX commercials lent credibility to the exchange before its collapse.

The reported settlement amount is nearly $1 million more than the $750,000 O’Neal was said to have earned for appearing in the FTX ad. Despite being one of several high-profile figures—including Tom Brady and Larry David—named in the lawsuit, O’Neal has maintained that he was “just a paid spokesperson”, with no direct involvement in the company’s operations.

If approved by the court, the settlement would release O’Neal from all future legal claims related to the lawsuit. The terms also state he will not seek compensation from the FTX bankruptcy estate and will not be required to admit wrongdoing.

The FTX scandal remains one of the most dramatic implosions in crypto history. Founder Sam Bankman-Fried was convicted of fraud and sentenced to 25 years in prison earlier this year. A recent update suggests his sentence could be reduced by more than four years under certain provisions.