NBA Hall of Famer Shaquille O’Neal has agreed to pay $1.8 million to resolve a class-action lawsuit linked to his endorsement of now-defunct cryptocurrency exchange FTX, according to court filings and reports.
The case is part of ongoing litigation that has ensnared several celebrity endorsers of the crypto platform, including Tom Brady, Stephen Curry, and Naomi Osaka.
The lawsuit, filed in federal court, alleges that O’Neal and other high-profile figures “controlled, promoted, assisted in and actively participated” in FTX Trading and FTX US, leading investors to believe the platform was a safe and reputable financial product.
O’Neal, who endorsed FTX in a June 2022 commercial, has maintained that he was “just a paid spokesperson”, with no active involvement in the company’s operations. Nevertheless, under the terms of the settlement, he will contribute $1.8 million toward compensating investors who say they were misled by celebrity endorsements.
FTX Collapse and Fallout
FTX, once the world’s third-largest crypto exchange, collapsed spectacularly in November 2022 after revelations that billions of dollars in customer funds had been misused by founder Sam Bankman-Fried and funneled into FTX’s sister hedge fund, Alameda Research. The exchange filed for Chapter 11 bankruptcy, wiping out roughly $8 billion in customer assets, according to U.S. District Judge Lewis A. Kaplan, who presided over Bankman-Fried’s criminal trial.
In November 2023, Bankman-Fried was convicted on seven felony counts, including wire fraud and conspiracy, and sentenced to 25 years in federal prison. Judge Kaplan also noted that FTX equity investors lost an estimated $1.7 billion, while lenders to Alameda Research were shorted another $1.3 billion.
Among the celebrity endorsers named in the ongoing litigation, Tom Brady reportedly invested $30 million in FTX and served as a global ambassador for the brand. Other co-defendants include David Ortiz, Shohei Ohtani, Trevor Lawrence, and Stephen Curry, who appeared in widely circulated advertising campaigns prior to the platform’s collapse.
The complaint claims that these public figures “leveraged their credibility and social influence” to promote FTX, encouraging fans and consumers to trust and invest in the exchange without full disclosure of its risks or the nature of their own financial relationships with the company.
Arena Sponsorship and Local Ties
The Miami Heat’s home court, once branded as FTX Arena, was renamed following the company’s implosion. O’Neal played four seasons for the Heat and won an NBA championship with the team in 2006, further tying his image to the region—and to the now-disgraced crypto brand.
The lawsuit against O’Neal and others remains ongoing for non-settling defendants.
Legal experts say this case could set important precedents about celebrity liability in financial endorsements, particularly in the cryptocurrency sector, which remains largely unregulated.
