Michaela
Shaquille O’Neal, the retired NBA star, has reached a settlement with investors who allege financial losses from the collapse of crypto exchange FTX, as part of a larger $21 billion lawsuit targeting celebrity endorsers of the platform.
A filing on April 23 in the U.S. District Court for the Southern District of Florida revealed that the details of the settlement will be made public once investors formally request preliminary court approval. The specific settlement amount remains undisclosed.
The legal proceedings involving the NBA star are part of a broader multidistrict litigation, with investors seeking up to $21 billion in damages from FTX insiders, advisers, and promoters—significantly more than the $9.2 billion available through bankruptcy proceedings.
Alongside O’Neal, notable individuals including NFL quarterback Tom Brady, supermodel Gisele Bündchen, former NBA player Udonis Haslem, ex-baseball star David Ortiz, tennis star Naomi Osaka, and billionaire investor Kevin O’Leary are also involved in the case.
Investors involved in the FTX lawsuit reportedly encountered difficulties in serving legal papers to the NBA star in the initial stages of the case, which centers around his promotion of the now-collapsed exchange.
Attorneys representing the victims accused the basketball legend of attempting to avoid the lawsuit, with multiple attempts to deliver court documents proving unsuccessful. Legal teams allegedly spent months trying to reach the former NBA player, resorting to unconventional tactics such as trying to serve him during NBA games and at his various properties.
O’Neal Settles NFT Lawsuit and FTX Lawsuit
The FTX lawsuit isn’t the first time O’Neal has found himself entangled in legal matters within the cryptocurrency space. In November 2024, he agreed to settle a class-action lawsuit for $11 million, which accused him of promoting unregistered securities through his endorsement of the Astrals NFT project.
The lawsuit, filed in September 2023, focused on O’Neal’s role in backing Astrals, a collection of 10,000 metaverse-ready 3D avatars. Plaintiffs argued that O’Neal’s star power was central to the project’s appeal, with his celebrity status driving investors to buy Astrals NFTs and GLXY tokens. They contended that these digital assets operated as unregistered securities, in violation of federal laws.
While the settlement was reached without an admission of guilt, it highlights the growing legal risks surrounding celebrity endorsements in the crypto and NFT markets. As these cases unfold, the pressure on public figures to carefully vet their involvement in such ventures only increases.
Read More
- Backpack Begins Claims Process for Former FTX EU Customers
- FTX/Alameda Unstakes 3.03M SOL, Raising Concerns Over Potential Impact
- FTX Co-CEO Gets Major Sentence Reduction, BOP Records Show
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
