The legal saga involving basketball legend Shaquille O’Neal and his association with the defunct crypto exchange FTX has finally reached a resolution. O’Neal has agreed to settle a class-action lawsuit by paying $1.8 million to investors who accused him of misleading them through his promotion of FTX.
The lawsuit, which was initially filed in November, centered around O’Neal’s participation in the “FTX: I Am All In” campaign, where he was known as “Shaqtoshi.” Despite multiple attempts to serve him, O’Neal was formally served outside his Atlanta residence in 2023.
The settlement, if approved by the court, will provide compensation to investors affected by FTX’s collapse and will release O’Neal from any further legal liabilities related to the exchange. It also prohibits him from seeking reimbursement from FTX’s bankruptcy estate.
The FTX bankruptcy has been a long and complicated process, with the exchange still in the process of repaying creditors and investors impacted by its downfall. To aid in this process, FTX has partnered with payment platform Payoneer to facilitate creditor settlements.
The partnership with Payoneer adds to existing facilitators like BitGo and Kraken, who have been helping to distribute funds to creditors. FTX has already made significant repayments, with a total of $1.2 billion distributed in the first round to claimants with losses under $50,000. A second round of payments totaling $5 billion is scheduled to be distributed to more creditors.
The collapse of FTX was a significant event in the crypto world, marked by fraud, corporate misconduct, and the misuse of customer funds by FTX executives. The founder of FTX, Sam Bankman-Fried (SBF), is currently serving a 25-year prison sentence for his role in the exchange’s downfall.
The resolution of the lawsuit and the ongoing repayment process signify a step towards closure for the investors and creditors affected by the FTX collapse. It also serves as a cautionary tale about the risks associated with investing in the volatile world of cryptocurrencies.