Shaquille O'Neal Settles with Investors Who Claim Losses from FTX Collapse

Shaquille O'Neal has settled with investors who claim losses from the collapse of cryptocurrency exchange FTX, according to an April 23 filing

Shaquille O’Neal has reached a settlement with investors who are seeking to recover losses following the collapse of cryptocurrency exchange FTX, according to an April 23 filing in the US District Court for the Southern District of Florida.

While the settlement amount remains confidential, the terms will be disclosed after investors formally request preliminary court approval, according to court documents.

O’Neal and other celebrities and athletes were accused of promoting FTX and allegedly contributing to investor losses by endorsing the now-bankrupt exchange.

The case is part of a broader multidistrict litigation effort, where investors are seeking up to $21 billion in damages from FTX insiders, advisers and promoters, far exceeding the $9.2 billion available through bankruptcy proceedings.

Other celebrities embroiled in similar legal troubles for their roles in FTX include NFL quarterback Tom Brady, supermodel Gisele Bündchen, billionaire investor Kevin O’Leary, former NBA player Udonis Haslem, David Ortiz, Naomi Osaka and others.

O’Neal faced challenges in being served with legal papers

Earlier reports indicate that O’Neal was among the celebrities sued by FTX investors in April 2023 for allegedly promoting the exchange to the public without disclosing that he was paid for the endorsements.

Lawyers representing the victims described O’Neal as “running from the lawsuit,” after multiple failed attempts to deliver court documents.

The legal teams reportedly spent months trying to reach the NBA legend, resorting to creative methods, attempting service during NBA games and at his residences.

Related: FTX former execs and promoters to settle class-action lawsuit for $1.3Mand new claims suggest FTX paid NBA for commercial space

O’Neal finalizes $11 million settlement over Astrals NFT project

The settlement with FTX investors comes as O’Neal recently agreed to pay $11 million to settle a class-action lawsuit tied to his involvement in the Solana-based Astrals NFT project.

In May 2023, O’Neal was served with the Astral NFT lawsuit during an NBA game at Miami’s Kaseya Center, previously known as FTX Arena. The class-action lawsuit focused on O’Neal’s promotion of the Astrals NFT project, alleging that the NFTs promoted by the basketball star were unregistered securities.

By August 2024, a Miami federal judge ruled that O’Neal would need to defend some of the claims brought against him in the case.

Astrals is a Solana-based project featuring 10,000 NFTs, a metaverse and a decentralized autonomous organization (DAO) with a governance token called Galaxy.