Shaquille O'Neal Settles FTX Lawsuit Confidentially
Shaquille O'Neal Settles FTX Lawsuit, Suggested to Have Evaded Legal Proceedings According to Counselors
After finding himself in hot water, basketball legend Shaquille "Shaqtoshi" O'Neal has reached a secret settlement with investors who accused him of hawking unregistered securities tied to the failed crypto exchange FTX. The particulars of the deal won't be spilled until a formal approval request is submitted to the Southern District court in Florida.
While O’Neal isn’t the only celebrity wrapped up in legal battles after FTX's downfall, he's just one among NFL quarterback Tom Brady, tennis sensation Naomi Osaka, and Shark Tank investor Kevin O'Leary.
FTX first caught the limelight by featuring O'Neal in their "I Am All In" campaign, promoting the platform without disclosing potential risks to the budding crypto investors.[1][4] As per the lawsuit, O’Neal's endorsement misled the investors.
Joining the list of celebrities untangling themselves from FTX-related complicated legal matters, NFL quarterback Trevor Lawrence and YouTubers Tom Nash and Kevin Paffrath have also reached settlements, though the terms remain hush-hush.[3]
Meanwhile, the lawsuit accuses O'Neal of openly "running" from lawyers, as his legal team reportedly had issues serving him papers.[4] In response, O'Neal and his associated Astrals entities eventually agreed to a settlement, parting ways with a hefty sum of approximately $11 million in monetary relief.[5]
Despite this past legal imbroglio, the Miami Heat were not deterred from their 19-year sponsorship deal, initially worth a whopping $135 million, with FTX. The partnership resulted in the team's stadium being christened the FTX Arena. However, post-FTX's demise, the arena was renamed the Kaseya Center.[1]
And interestingly, this isn't Shaq's first crypto-related settlement. In 2024, he finds himself on the wrong side of the law again, this time in relation to his Astrals NFT project.[5] The lawsuit alleged that O'Neal had promoted the project before abandoning it, a move that, according to a Florida federal judge, could classify him as an “seller” under securities law.[5]
Remember, though the particulars of this O'Neal-FTX settlement are under wraps, ongoing investigations reveal the potential for remaining defendants to face steep financial consequences in the months ahead.[1][4]
Daily Debrief Newsletter
Courtside Chatter:- Opposing legal teams in the FTX case joust like gladiators over unregistered securities, with the specter of a potential $21 billion damages claim hanging over the defendants.[1][4]- A separate group of FTX promoters have already agreed to a $1.3 million settlement in a related class-action case.[1]- Shaq's turbulent history with cryptocurrency extends beyond the current FTX ordeal, with his Astrals NFT project previously embroiled in controversy.[5]
- Shaquille O'Neal, popularly known as Shaqtoshi, has settled a lawsuit confidentially after being accused of promoting unregistered securities tied to the failed crypto exchange FTX.
- The basketball legend isn't the only celebrity entangled in legal issues after FTX's collapse; Tom Brady, Naomi Osaka, Kevin O'Leary, Trevor Lawrence, Tom Nash, and Kevin Paffrath are also involved.
- O'Neal was initially featured in FTX's "I Am All In" campaign, which promoted the cryptocurrency exchange without disclosing potential risks to investors.
- As per the lawsuit, O’Neal's endorsement misled investors, and he was accused of running from lawyers when served papers.
- O'Neal and his associated Astrals entities eventually agreed to a settlement, parting ways with approximately $11 million in monetary relief.
- The Miami Heat's 19-year sponsorship deal with FTX resulted in their stadium being named the FTX Arena, but post-FTX's demise, it was renamed the Kaseya Center.
- Shaq's legal troubles in cryptocurrency aren't limited to the current FTX case; in 2024, he was involved in a controversy over his Astrals NFT project.
- Despite the confidential settlement, ongoing investigations suggest remaining defendants could face significant financial consequences in the future.
