NBA Legend Shaquille O’Neal Reaches Settlement Over FTX Crypto Exchange Endorsement
NBA Champion Shaquille O’Neal has recently settled a lawsuit with a group of investors who accused him of promoting the now-defunct crypto exchange FTX. The terms of the agreement remain confidential, with both parties seeking court approval for the proposed resolution.
The court filing, submitted on April 23, disclosed that O’Neal and the investors have come to a mutual agreement. O’Neal, along with other celebrities, was sued for endorsing FTX before its bankruptcy in 2022. Despite claiming to be a paid spokesperson, O’Neal’s association with the company made him a target for investors seeking compensation for their financial losses.
This isn’t the first time O’Neal has faced legal challenges in the digital asset space. In a separate case last year, he settled a class-action lawsuit related to the NFT project Astrals on the Solana blockchain, agreeing to an $11 million settlement over allegations of misrepresentation and unregistered securities sales.
The timing of O’Neal’s settlement coincides with ongoing developments in the FTX bankruptcy proceedings. The defunct exchange is set to make additional creditor payments starting in May, following a previous round that distributed $1.2 billion to claimants with balances under $50,000.
However, the repayment process has also exposed investors to new risks. Sunil Kavuri, an advocate for FTX creditors, issued a warning about phishing emails targeting affected users. Scammers are reportedly using leaked data to send fraudulent messages, prompting Kavuri to advise recipients to avoid clicking on unknown links and verify all communication through official FTX channels.
As O’Neal and the investors move forward with their settlement, the aftermath of the FTX bankruptcy continues to unfold. With ongoing creditor payments and cybersecurity threats looming, affected individuals must remain vigilant in protecting their assets and personal information.