Shaq Settles the Score: FTX Lawsuit Ends in Confidential Deal

Basketball icon and media personality Shaquille O’Neal has reached a confidential settlement in a class-action lawsuit over his promotion of the now-defunct cryptocurrency exchange FTX. The agreement effectively ends months of legal wrangling that placed O’Neal at the center of one of the crypto industry’s most high-profile collapses.

Filed in late 2022, the lawsuit accused O’Neal and several other celebrities of misleading investors by endorsing FTX without properly disclosing the risks associated with the platform. Plaintiffs alleged that the promotional efforts helped lend credibility to FTX, which ultimately filed for bankruptcy amid allegations of fraud and financial misconduct.

O’Neal, who had initially avoided being served legal papers for several months, became a central figure in the suit due to his widespread visibility and influence. He had appeared in multiple FTX advertisements and public events, portraying the exchange as a safe and innovative way to invest in crypto.

Terms of the settlement were not disclosed, and attorneys for both parties declined to comment on specific details. However, sources familiar with the case confirmed that the agreement resolves all outstanding claims against O’Neal related to FTX promotions.

Legal experts say the confidential nature of the deal is not unusual in high-profile cases involving celebrities, particularly when reputational concerns are at stake.

“This settlement allows Shaquille O’Neal to move forward without admitting liability, while plaintiffs avoid a prolonged legal battle,” said Andrea Thompson, a securities attorney specializing in class-action litigation. “It also underscores the growing scrutiny facing celebrity endorsements in the crypto space.”

O’Neal is one of several public figures—including Tom Brady, Larry David, and Stephen Curry—who have been named in legal actions tied to FTX. Some cases remain ongoing, while others have also resulted in confidential settlements.

The case serves as a cautionary tale for celebrities and influencers entering the volatile world of digital assets. Regulators and investors alike are calling for clearer guidelines around promotional disclosures, especially as crypto continues to intersect with mainstream culture.