Shaquille O'Neal agrees to pay 1.8 million dollars in FTX investor litigation settlement.
Shaq Settles for 1.8 Million over FTX Scandal
Shaquille O'Neal has agreed to a staggering $1.8 million payout to put an end to allegations that he duped investors by hawking the bankrupt crypto exchange FTX.
Once a proud supporter of the platform, the NBA legend will settle the claims without admitting any guilt. The hefty payout marks one of the first major settlements in the legal fallout from FTX's collapse.
In court documents filed in Florida, O'Neal will cover all legal fees, administrative costs, and payouts for eligible investors. The settlement, if approved by a judge, includes a full waiver of future liability and prohibits him from seeking reimbursement from the FTX bankruptcy estate.
The lawsuit accuses O'Neal of promoting FTX as a trustworthy investment tool, particularly at live events and on social media, while allegedly pushing illegal securities. Eligible investors include anyone who deposited funds or held FTX's proprietary token, FTT, between 2019 and late 2022.
Meanwhile, other celebrities like Tom Brady, Gisele Bundchen, and Steph Curry face fewer hurdles, as their involvement in the FTX saga is dwindling, with most cases being dismissed. However, O'Neal's legal evasion delayed the process, with legal papers finally being served in April 2023.
Despite being embroiled in the controversy, O'Neal inked a $15 million deal to continue his stint with TNT's "Inside the NBA." When asked about his engagement with FTX, he stated, "I was just a paid spokesperson for a commercial."
The settlement details emerged as O'Neal wasn't up to speed with cryptocurrencies, saying they were "too good to be true." Earlier enthusiasm from celebrities like Larry David and Kevin O'Leary for cryptocurrencies seems to have waned, as regulatory uncertainty and market volatility loom large.
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O'Neal has remained tight-lipped on the specifics of the case, leaving investors to ponder exactly how deep his involvement with FTX went. Despite the controversy surrounding this high-profile settlement, O'Neal's career, both on and off the court, continues to soar.
[1] https://www.cnbc.com/2021/07/21/shaq-to-get-paid-10-million-to-promote-crypto-exchange-ftx.html
[2] https://www.cnbc.com/2022/11/01/ftx-head-sam-bankman-fried-charged-with-defrauding-investors.html
[3] https://www.cnbc.com/2023/04/07/shaq-faces-future-ftx-lawsuit-as-legal-papers-finally-served-report.html
[4] https://www.reuters.com/legal/litigation/shaq-latest-fighter-lose-crypto-promotion-lawsuit-2023-06-13/
- Despite the FTX scandal, Shaquille O'Neal continues to be involved in finance, having inked a $15 million deal to remain with TNT's "Inside the NBA."
- O'Neal's settlement with FTX marks one of the first major financial fallouts from the crypto exchange's collapse.
- The lawsuit against O'Neal accuses him of promoting FTX as a trustworthy tool for investment, particularly at live events and on social media.
- Other celebrities like Tom Brady, Gisele Bundchen, and Steph Curry have seen fewer legal hurdles in the FTX saga, with most cases being dismissed.
