Former NBA Star Shaquille O’Neal Agrees to Pay $1.8M to Settle FTX Suit

Shaquille O’Neal agreed to pay $ 1.8 million in a class lawsuit claiming to have helped promote the demolished CRIPTO exchange of FTX.

Retired NBA star in the beginning settled The case in April in April without recognition of injustice in the Federal Court in Florida. Shortly after, several other cases against FTX associated with celebrities saw that their claims were narrowed, although investors were allowed to restart their claims.

Latest agreementIf the court approved it, he would officially end the class action and cover legal fees, administrative costs and compensation to investors who have laid down money or held the FTX Token, FTT, between May 2019 and the end of 2022.

It also gives O’Neal a disturbance from future responsibility and forbids him to seek repayment with FTX bankruptcy estate.

Lawyers for O’Neal said CNBC were “pleased that the question were behind us.”

The class action stems from the allegations that O’Neal “actively participated” in the promotion of FTX offers and sales of unregistered securities. Once He appeared In the present advertisement that stated that “everything inside” was on the platform, despite saying later that he did not fully understand the cryptocurrency.

Feet to fire

The lawsuit was part of a wider legal effort for celebrities to be responsible for approval of the FTX before the collapse at the end of 2022.

Prosecutors claim that figures like O’Neal have helped to present FTX as a reliable and legitimate, encouraging adoption of a platform that has ultimately failed, leaving billions in customer property.

Other celebrities appointed in similar suits include NFL stars Tom Brady and Trevor Lawrence, tennis champion Naomi Osaka and an investor in an investor with a sea piano Kevin O’Leary. Some, including Lawrence and YouTubers Tom Nama -ai Kevin Pafrath, have already achieved undiscovered settlements.

O’Neal had previously faced the supervision of a legal service in the FTX case, and lawyers from Moscowitz’s law firm reportedly dropped TNT studies in Atlanta to submit a lawsuit.

Court documents show that O’Neal has been paid approximately $ 750,000 for their promotional work with FTX.

This is not the only legal question of O’Neal. 2024 agreed at a $ 11 million settlement for promoting the Astrals NFT project, which prosecutors claimed to have left after promoting it.

FTX, once valuable in dozens of billions, crashed in 2022 in the midst of charges of fraud and poor management of the founder Sam Bankman-Fied.

The bankruptcy company has discovered enormous consumption on marketing contracts, including a $ 135 million appointment agreement for Miami Heat’s Arena and over $ 6 million on the 30-season advertisement Super Bowl.

In March 2024, he was sentenced to 25 years in prison.

Edited Sebastian Sinclair