Shaquille O’Neal reaches settlement with FTX victims

Basketball legend Shaquille O’Neal has a settlement in a lawsuit that stemmed from his involvement in the FTX scandal. That comes from new court documents.

In the class-action, O’Neal is accused of actively promoting and selling unregistered securities of crypto exchange FTX, before the platform collapsed in 2022. O’Neal appeared in a commercial where he declared he was “all in” on FTX, a statement he later walked back by saying he “didn’t understand any crypto.”

The plaintiffs, victims of the FTX collapse, are seeking up to $21 billion in damages from O’Neal and other parties involved, including promoters, former executives, and insiders of the crypto platform.

According to the court documents, both sides have now agreed to a settlement. A formal request for approval will be filed with the judge soon. The settlement terms remain confidential for now.

Shaquille O’Neal isn’t the only celebrity who landed in legal hot water after FTX’s collapse. NFL star Tom Brady, tennis icon Naomi Osaka, and businessman Kevin O’Leary, known from Shark Tank, were also sued for their ties to the platform.

FTX’s downfall is viewed as one of the biggest financial scandals in modern history. An estimated $8–$10 billion in customer funds disappeared.

Founder Sam Bankman-Fried, simply SBF, maintained close ties with prominent Americans during the height of his crypto empire and played a significant role in American politics. He was known as one of the Democratic Party’s biggest donors and was a regular guest at the White House. The logo of his company even adorned the Miami Heat stadium, the NBA team Shaquille O’Neal played for four seasons.