In a significant development tied to the collapse of the cryptocurrency exchange FTX, NBA legend Shaquille O’Neal has reportedly reached a $1.8 million settlement to resolve claims against him for his role in promoting the platform.
The settlement, finalized recently, marks a notable contrast to the ongoing legal fight of NFL icon Tom Brady, who, along with other celebrity endorsers, faces potential damages in the billions as the civil litigation unfolds.
The FTX debacle, which saw the exchange implode in November 2022, left countless investors reeling from substantial financial losses.
A class-action lawsuit filed in 2023 targeted a slew of high-profile figures, including O’Neal, Brady, NBA star Stephen Curry, tennis player Naomi Osaka, and comedian Larry David, accusing them of misleading investors through their endorsements.
The lawsuit alleges that these celebrities played a pivotal role in luring individuals to invest in FTX, which was later revealed to be riddled with mismanagement and fraud.
O’Neal’s settlement comes after he was reportedly paid $750,000 for his promotional work, including a commercial where he humorously declared himself “in” on crypto with FTX.
The $1.8 million payout—more than double his initial fee—reflects the gravity of the claims and the potential risks of prolonged litigation.
Sources indicate that O’Neal’s decision to settle may prove to be a prudent move, as the case against other endorsers continues to escalate.
According to an attorney representing the plaintiffs, those still fighting the lawsuit, like Brady and Curry, could face staggering financial penalties if found liable.
The contrast between O’Neal’s resolution and Brady’s ongoing battle underscores the high stakes of the FTX fallout.
Brady, a seven-time Super Bowl champion, was not only a prominent endorser but also an investor in FTX, reportedly holding a significant stake alongside his ex-wife, Gisele Bündchen.
The couple’s involvement has drawn intense scrutiny, with estimates suggesting their losses could be in the tens of millions.
Brady’s legal team is reportedly pushing to dismiss the claims, arguing that his endorsements did not directly cause investor losses.
However, the plaintiffs’ attorneys remain confident, asserting that the celebrities’ influence was instrumental in driving FTX’s growth and subsequent collapse.
The FTX case has broader implications for the world of celebrity endorsements, particularly in the volatile cryptocurrency market.
The lawsuit highlights the risks public figures face when promoting financial products, especially those lacking regulatory oversight.
Legal experts note that the outcome of this case could set a precedent for how accountability is enforced in similar situations, potentially deterring celebrities from endorsing speculative ventures without due diligence.
For O’Neal, the settlement closes a chapter on what has been a costly misstep.
The former Los Angeles Lakers star, known for his savvy business ventures, has largely maintained a positive public image despite the controversy.
His decision to settle may allow him to move forward without the prolonged media attention that Brady and others are likely to endure as the case progresses.
As the litigation against Brady, Curry, and other endorsers continues, the FTX saga serves as a cautionary example/reminder about the perils of unchecked hype in the crypto industry.
Investors, still grappling with the fallout, are watching closely, hoping for accountability from those who promoted the platform.
Whether Brady and his co-defendants will follow O’Neal’s lead and settle or fight the claims to the end remains uncertain.
What is clear, however, is that the FTX collapse will leave a lasting mark on the intersection of celebrity, finance, and cryptocurrency.