TLDR
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Shaq Settles FTX Lawsuit for $1.8M, Escapes Further Legal Heat
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“Shaqtoshi” Pays Up: O’Neal Ends FTX Case With No Admission of Guilt
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FTX Fallout: Shaquille O’Neal Agrees to $1.8M Class Action Deal
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Shaq Exits FTX Scandal, Joins Growing List of Settled Celebrities
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O’Neal’s FTX Role Costs $1.8M as Repayments to Victims Continue.
Shaquille O’Neal has agreed to a $1.8 million settlement to resolve a class action lawsuit over his FTX promotions. The case accused him of misleading investors through public endorsements of the now-defunct cryptocurrency exchange.
Settlement Ends Years-Long Legal Dispute
The lawsuit, filed in a Florida federal court, targeted O’Neal’s role in promoting FTX’s investment offerings to retail customers. Plaintiffs claimed he endorsed FTX as safe and legitimate, leading many to invest in the platform and its token. The class action includes users who held FTT or deposited funds into FTX between 2019 and 2022.
🚨 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
O’Neal’s payment will cover legal fees, investor payouts and settlement administration costs. The court must approve the deal, which also grants him full release from future legal claims. He will not be allowed to recover any amount from the FTX bankruptcy estate.
The NBA icon consistently denied wrongdoing and said he was only a paid spokesperson for a marketing campaign. However, unlike other celebrity defendants who were dismissed earlier, O’Neal remained part of the lawsuit due to service delays. After months of failed attempts, he was eventually served legal papers at his home.
Marketing Campaigns and Legal Exposure
O’Neal participated in the “FTX: I Am All In” campaign and was branded as “Shaqtoshi” in various promotional materials. He featured in commercials and live events, encouraging trust in FTX during its peak market presence. These appearances became key evidence in the lawsuit, as plaintiffs argued they influenced user investment behavior.
Despite his promotional involvement, O’Neal previously claimed he had no detailed knowledge of cryptocurrency or the platform’s inner workings. He said he avoided investing in crypto due to uncertainty and risk. His attorneys maintained he did not control or manage any part of FTX’s operations.
Other celebrities named in the same lawsuit, including Tom Brady and Steph Curry, saw their cases dismissed earlier. O’Neal’s involvement persisted due to procedural challenges and the perceived impact of his promotions. The settlement now allows him to move on from the case without admitting liability.
FTX Repayment Plans Progress
FTX has partnered with Payoneer to assist in its ongoing repayment process to creditors and affected users. The payments firm joins BitGo and Kraken as official facilitators of creditor fund distributions. FTX aims to streamline the repayment process after delays caused by bankruptcy complications.
The exchange began repayments in February 2025, disbursing $1.2 billion to creditors with claims under $50,000. A second round of payments scheduled for mid-2025 targets over $5 billion. These efforts reflect attempts to restore partial losses caused by the firm’s collapse.
FTX’s downfall remains one of the largest fraud cases in crypto history. Investigations revealed widespread misuse of customer funds and deception by former executives. Its founder, Sam Bankman-Fried, is currently serving a 25-year sentence for his role in the fraud.
