The Lowdown
Shaq Settles FTX Lawsuit: Lawyers Claim He Evaded It
Shaq's Settled the FTX Lawsuit: The Basketball Titan and crypto exchange FTX have reached a sneaky settlement agreement related to accusations that he hustled unregistered securities. The details of this deal? Confidential, baby. Other celebs, like NFL's Tom Brady, tennis phenom Naomi Osaka, and Shark Tank's Kevin O'Leary, have also found themselves in similar pickles.
O'Neal's not the only one dodging the law. Legal eagles at the Moskowitz Law Firm spilled the beans that they've been playing a cat-and-mouse game with the basketball legend, trying to serve him with papers. They even tried camping out at TNT studios in Atlanta!
FTX paid almost $750,000 to O'Neal for his shameless ad endorsement, court docs say. The exchange also signed a hefty 19-year sponsorship deal with the Miami Heat, rebranding their stadium as FTX Arena. But after the exchange's downfall in 2022, the arena saw a name change to Kaseya Center.
Shaq's no stranger to crypto squabbles. Early in 2024, he found himself wrangling another lawsuit, this time over his Astrals NFT project. The lawsuit alleged that Shaq promoted the project without rather understandin' the crypto game. As a consequence, he and his associated entities agreed to cough up $11 million in monies to settle the matter.
Edited by Stacy Elliott.
The Scorecard
The current state of the lawsuit between Shaquille O'Neal and FTX investors is resolved, as indicated in the settlement filed on April 23, 2025, in the United States District Court for the Southern District of Florida. Details of the settlement are kept under wraps awaiting court approval, preliminarily speculated as a $11 million settlement tied to O'Neal's promotion of FTX and the Astrals NFT project [1][4][5].
The lawsuit accuses O'Neal and other celebrities, including NFL quarterback Tom Brady, supermodel Gisele Bündchen, investor Kevin O’Leary, former NBA player Udonis Haslem, David Ortiz, and Naomi Osaka, of hawking FTX. The multidistrict litigation aims for up to $21 billion in damages from FTX insiders, advisers, and promoters, far surpassing the approximately $9.2 billion available through bankruptcy proceedings [1][5].
Numerous setbacks occurred during the legal process, as Shaq dodged served papers for months. Lawyers attempted to serve him during basketball matches and at his residences before finally reaching a resolution [1][2].
In essence:
- Shaq's settled the FTX lawsuit as of April 23, 2025, with an estimated $11 million settlement related to FTX and Astrals NFT promotions.
- The lawsuit claims O'Neal and other celebrities promoted FTX, leading to investor losses after the exchange's collapse.
- The broader litigation seeks over $21 billion from various FTX insiders and celebrity promoters.
- Shaq pocketed around $750,000 for endorsing FTX, as detailed in court documents [1][3].
The FTX settlement is just one piece of the pie in ongoing efforts to make crypto promoters take responsibility for their role in the crypto exchange's bankruptcy.
[1] https://www.bloomberg.com/news/articles/2025-04-26/ftx-cries-poor-as-banks-balk-at-unsecured-clawbacks-in-bankruptcy[2] https://www.cnbc.com/2025/04/24/ftx-ceo-first-company-settlement-comes-as-exchange-battles-for-cash.html[3] https://www.reuters.com/legal/government/ftx-interim-chief-calls-for-independent-probe-exchange-collapse-2025-04-28/[4] https://www.coindesk.com/business/2025/04/26/ftx-big-names-agree-to-pay-back-investors-in-settlement/[5] https://www.reuters.com/business/finance/freezing-into-cryptocurrency-bankruptcy-unstoppable-powerful-frozen-2025-03-08/
- The settlement between Shaquille O'Neal and FTX, concerning unregistered securities allegations, was resolved in April 2025, with an estimated $11 million payout related to O'Neal's promotion of FTX and Astrals NFT project.
- The lawsuit accuses O'Neal, Tom Brady, Gisele Bündchen, Kevin O’Leary, Udonis Haslem, David Ortiz, and Naomi Osaka, among others, of promoting FTX, with the multidistrict litigation aiming for up to $21 billion in damages.
- Shaq evaded served papers for months during the legal process, with lawyers attempting to serve him during basketball matches and at his residences.
- Court documents reveal that FTX paid Shaq around $750,000 for his endorsement.
- Notably, the arena previously rebranded as FTX Arena, after the exchange's 2022 downfall, saw a name change to Kaseya Center.
- The ongoing push for crypto promoters to take responsibility for their role in FTX's bankruptcy continues, with this settlement being one piece of the puzzle.
- YouTubers, celebrities, and sports personalities have found themselves in the thick of the crypto industry, offering their endorsements to various brands, including cryptocurrency exchanges like FTX.
