Shaquille O’Neal Settles FTX Lawsuit, Terms Remain Confidential
Shaquille O’Neal has reached a settlement with investors who claim losses from the collapse of cryptocurrency exchange FTX, according to a recent court filing. The terms of the settlement are confidential and are expected to be disclosed only after investors formally request preliminary court approval.
This settlement comes as part of a broader multidistrict litigation effort, where investors are seeking up to $21 billion in damages from FTX insiders, advisors, and promoters. This sum far exceeds the $9.2 billion available through FTX‘s bankruptcy proceedings.
O’Neal, along with other celebrities and athletes, was accused of promoting FTX and allegedly contributing to investor losses by endorsing the now-bankrupt exchange. The lawsuit alleged that these endorsements led investors to believe FTX was a legitimate and safe platform, when in reality, it was riddled with fraud and mismanagement.
The Ongoing Fallout from FTX‘s Collapse
The FTX saga continues to unfold, with various legal battles and settlements ongoing. Other celebrities embroiled in similar legal troubles for their role in FTX include NFL quarterback Tom Brady, supermodel Gisele Bündchen, billionaire investor Kevin O’Leary, and several athletes, including Udonis Haslem, David Ortiz, and Naomi Osaka.
The settlement with FTX investors is the latest in a string of legal challenges faced by O’Neal. In May 2023, he was served with a class-action lawsuit during an NBA game at Miami’s Kaseya Center, formerly the FTX Arena, regarding his promotion of the Solana-based Astrals NFT project. This lawsuit alleged that the NFTs promoted by O’Neal were unregistered securities.
Shaq’s Recent NFT Settlement
Just last month, O’Neal finalized an $11 million settlement to resolve the class-action lawsuit related to the Astrals NFT project. This settlement, while significant, signifies the potential legal risks associated with celebrity endorsements of digital assets, particularly in the fast-evolving world of NFTs.
While the terms of the FTX settlement remain undisclosed, this development highlights the increasing scrutiny surrounding celebrity endorsements in the crypto space. As the industry continues to mature, it remains crucial for investors to conduct thorough due diligence and consider the potential risks before engaging with any investment opportunity, especially those involving prominent figures.
