NBA star **Shaquille O’Neal** has agreed to pay $1.8 million to settle a lawsuit accusing him of misleading investors by endorsing the now-defunct crypto exchange **FTX**. The settlement aims to resolve a class action lawsuit filed in a Florida federal court.
The collapse of **FTX** in late 2022 rattled the cryptocurrency market following allegations of offering unregistered securities and engaging in fraudulent activities, resulting in substantial customer losses. Despite initially denying any wrongdoing, Shaq’s team has opted to settle the case without admitting liability.
The $1.8 million payout by Shaq will cover legal fees, administrative costs, and investor payouts, shielding him from future liability and preventing him from seeking repayment from **FTX**. The class action lawsuit encompasses all investors and holders of **FTX**’s native tokens, including **FTT**, between May 2019 and late 2022.
While fellow celebrity endorsers like Tom Brady, Steph Curry, and Gisele Bündchen had their cases dismissed, Shaq faced legal scrutiny until 2023. In his defense, Shaq claimed in a 2022 interview that he was merely a paid spokesperson for a commercial. However, plaintiffs argued that he and others contributed to promoting an aggressive market of unregistered securities.
This isn’t Shaq’s first crypto-related settlement, as he previously paid $11 million to settle claims related to his Astrals NFT project. **FTX**, once a prominent player in the crypto sphere, collapsed in November 2022. The founder, **Sam Bankman-Fried**, received a 25-year prison sentence and was ordered to forfeit $11 billion for orchestrating one of the largest financial frauds in U.S. history.
The downfall of **FTX** underscored how high-profile endorsements can entice investors into risky platforms, many of which eventually failed.
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