- Shaquille O’Neal quietly settles FTX lawsuit, terms pending court approval
- Serving O’Neal court papers proved difficult, delaying FTX lawsuit progress
- O’Neal also settled $11M lawsuit over Astrals NFT unregistered securities
Shaquille O’Neal has reached a settlement in the ongoing FTX lawsuit, resolving his involvement in the controversy surrounding the failed cryptocurrency exchange. The settlement, filed on April 23 in the U.S. District Court for the Southern District of Florida, will see O’Neal reach an agreement with investors who lost money due to the collapse of FTX. While the terms of the settlement remain undisclosed, they are expected to be revealed once the investors formally request preliminary court approval.
O’Neal’s involvement in the lawsuit stems from his promotion of FTX, which investors claim contributed to their losses. The case is part of a larger $21 billion class-action lawsuit targeting FTX promoters, including several high-profile celebrities.
These figures are accused of endorsing the platform and attracting investors without properly disclosing the risks involved, leading to significant financial damage. However, the terms of O’Neal’s settlement remain a closely guarded secret, leaving many to speculate about the exact amount involved.
A Long Legal Battle
The road to settlement has been anything but smooth for O’Neal. Legal teams representing FTX investors struggled for months to serve O’Neal with the necessary court papers. Efforts to reach him included attempts to deliver legal documents during NBA games, as well as at his residences.
Despite these efforts, lawyers reportedly faced numerous setbacks and described the NBA legend as “running from the lawsuit.” This delay added complexity to an already tangled case involving several other celebrities.
Besides O’Neal, other famous figures such as NFL quarterback Tom Brady, supermodel Gisele Bündchen, and billionaire investor Kevin O’Leary are also facing legal scrutiny for their roles in promoting FTX.
The lawsuit seeks damages from FTX insiders, advisers, and celebrity promoters, with a total claim exceeding $21 billion. However, FTX’s bankruptcy proceedings are unlikely to cover even a fraction of this amount, further complicating the efforts to recover investor losses.
O’Neal’s Other Legal Troubles
In addition to the FTX lawsuit, O’Neal settled another class-action lawsuit tied to his promotion of the Astrals NFT project. This project, which is based on the Solana blockchain, faced allegations of promoting unregistered securities.
As part of the settlement, O’Neal agreed to pay $11 million. This legal battle, which began in May 2023, has added to the mounting legal pressures on the NBA Hall of Famer, highlighting the increasing scrutiny faced by celebrities who promote high-risk financial ventures.
