Shaquille O’Neal has reached a $1.8 million settlement in the class-action lawsuit over his promotion of the collapsed cryptocurrency exchange FTX, according to court documents filed this week. The NBA legend joins a growing list of celebrities who have settled claims related to their endorsement of the platform that spectacularly imploded in late 2022.
The settlement comes after O’Neal initially attempted to evade being served legal papers, with plaintiffs claiming he deliberately dodged process servers for months. The former Lakers star had appeared in FTX commercials where he encouraged consumers to join the platform, telling viewers “I’m all in. Are you?”
The lawsuit alleged that O’Neal and other celebrity promoters failed to disclose they were paid to endorse FTX, violating securities laws by promoting unregistered securities. This settlement doesn’t include an admission of wrongdoing on O’Neal’s part.
“Celebrity endorsers have a responsibility to understand what they’re promoting, especially in complex financial markets,” said Michael Freedman, a cryptocurrency legal analyst I spoke with last week at the Consensus 2025 conference. “The FTX collapse demonstrates the potential harm when trusted public figures lend their credibility to unvetted financial products.”
The $1.8 million figure represents a fraction of what O’Neal likely earned from his FTX partnership, though the exact compensation for his promotional work hasn’t been publicly disclosed. Court filings indicate the settlement amount was calculated based on O’Neal’s promotional reach and influence compared to other celebrity defendants.
Several other high-profile figures have already settled similar claims, including Tom Brady, Gisele Bündchen, and Steph Curry. Brady and Bündchen agreed to pay $11.7 million combined, while Curry and his SC30 company settled for approximately $3 million.
FTX, once valued at $32 billion, collapsed in November 2022 amid allegations of fraud and mismanagement. Founder Sam Bankman-Fried was convicted on seven counts of fraud and conspiracy in 2023 and sentenced to 25 years in prison. The company’s implosion sent shockwaves through the cryptocurrency industry and prompted increased regulatory scrutiny of digital asset businesses.
The settlement money will go to the FTX customer recovery fund, though it represents just a small fraction of the billions lost when the exchange collapsed. Creditors are still working through the bankruptcy process to recover assets, with estimates suggesting they may eventually recover between 40-60 cents on the dollar.
“This settlement highlights the growing legal accountability for influencers in the crypto space,” said Rebecca Cohen, director of consumer protection at the Digital Finance Institute. “We’re seeing a significant shift in how courts view celebrity endorsements of financial products.”
The case has become something of a cautionary tale within the entertainment industry. Talent agencies now routinely advise clients to conduct thorough due diligence before partnering with cryptocurrency companies, and many contracts now include specific clauses limiting liability if endorsed platforms encounter regulatory issues.
The aftermath of the FTX debacle has prompted calls for clearer regulatory frameworks around celebrity endorsements of financial products. The SEC has intensified its focus on crypto promotions, issuing updated guidance on influencer disclosures for digital assets.
“The line between celebrity endorsement and investment advice has become dangerously blurred in the crypto space,” I observed while reporting on regulatory trends earlier this year. “These settlements may establish precedents for how future cases are handled.”
For cryptocurrency companies still operating in the market, the FTX celebrity lawsuits serve as a reminder of the importance of compliance and transparency. Many platforms have overhauled their marketing approaches, moving away from celebrity-driven campaigns toward more educational content.
The settlement requires court approval before being finalized. If approved, it would resolve one of the most high-profile cases against celebrity crypto promoters to date, though several other defendants remain in ongoing litigation.
