The world of celebrity crypto endorsements just witnessed another costly unraveling. Basketball legend Shaquille O’Neal has agreed to pay $1.8 million to settle claims related to his promotion of the now-collapsed cryptocurrency exchange FTX. This settlement marks the latest chapter in the ongoing saga of celebrity entanglements with failed crypto ventures.
O’Neal’s involvement with FTX began in 2022 when he appeared in promotional content for the exchange. In one commercial, Shaq playfully declared himself “unavailable” for the FTX partnership while his doppelgänger enthusiastically endorsed the platform—a tongue-in-cheek approach that ultimately provided little protection from legal repercussions.
The settlement comes amid a broader reckoning for celebrities who lent their names and faces to FTX before its spectacular implosion. The cryptocurrency exchange, once valued at $32 billion, filed for bankruptcy in November 2022 after revelations of mismanagement and alleged fraud by founder Sam Bankman-Fried, who has since been convicted on multiple counts of fraud and conspiracy.
According to court documents, O’Neal’s $1.8 million settlement represents approximately what he was paid for his promotional work. Unlike some other celebrity endorsers who received compensation in cryptocurrency, Shaq reportedly insisted on being paid in traditional currency—a decision that now appears prescient given crypto’s volatility.
“Celebrity endorsements in cryptocurrency carry unique risks that traditional product promotions don’t,” explains Dr. Eleanor Patel, director of digital finance ethics at the Blockchain Policy Institute. “The regulatory framework is still evolving, and many consumers place undue trust in familiar faces without understanding the underlying technology or risks.”
O’Neal joins a growing list of celebrities who have faced legal consequences for their crypto endorsements. NFL quarterback Tom Brady, supermodel Gisele Bündchen, and comedian Larry David have all been named in lawsuits related to FTX promotions. The legal theory behind these cases centers on whether celebrities adequately disclosed their paid relationships with the platform and if they conducted reasonable due diligence before lending their reputations.
What makes these cases particularly noteworthy is the Securities and Exchange Commission’s increasing scrutiny of celebrity crypto endorsements. In 2022, the SEC fined Kim Kardashian $1.26 million for promoting the EthereumMax token without properly disclosing her payment for the endorsement.
The collapse of FTX has revealed systemic issues within cryptocurrency exchanges that even the most sophisticated investors might have missed. Former CEO Bankman-Fried was convicted of orchestrating one of the largest financial frauds in history, misappropriating billions in customer funds. The exchange’s failure left over a million creditors in limbo, many of whom were everyday investors drawn to the platform partly due to its celebrity endorsements.
“There’s something particularly damaging about sports figures promoting financial products,” notes financial psychology researcher Marcus Webb. “Athletes represent discipline, hard work, and success—qualities we associate with sound financial decision-making. When they endorse something, it carries an implicit promise of reliability that other celebrity endorsements might not.”
O’Neal’s settlement doesn’t include an admission of wrongdoing, but it does allow him to move forward from what has become an expensive and reputation-damaging episode. The basketball icon has remained relatively quiet about the matter, in contrast to his typically outspoken public persona.
The fallout from FTX has prompted calls for clearer regulation of cryptocurrency advertising and stronger disclosure requirements for celebrity endorsers. Currently, the line between promoting a legitimate financial service and potentially misleading vulnerable investors remains blurry in the rapidly evolving crypto landscape.
For everyday investors, the lesson seems clear: celebrity endorsements, regardless of how trusted or beloved the personality might be, should not substitute for thorough research and risk assessment—particularly in the volatile world of cryptocurrency.
As the dust settles on this particular settlement, the broader implications for celebrity endorsements in the crypto space continue to evolve. What’s certain is that the era of consequence-free promotion of digital assets appears to be over, with regulators, courts, and the public demanding greater accountability from both the platforms and their famous faces.
