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Shaquille O'Neal Writes a $1.8 Million Check to Settle FTX Legal Dispute

Shaquille O'Neal reaches a million-dollars agreement to put an end to the lengthy class action lawsuit concerning his FTX endorsements.

Shaquille O’Neal settles class action lawsuit over FTX endorsements for a sum of $1 million.
Shaquille O’Neal settles class action lawsuit over FTX endorsements for a sum of $1 million.

Shaq Settles FTX Saga: Drops $1.8M to Squash Lawsuit

It looks like the legal tangle surrounding basketball legend Shaquille O'Neal and his associations with the bankrupt crypto exchange FTX is about to untangle.

Reports from CNBC reveal that the hall-of-famer has decided to part with an astounding $1.8 million to settle the class-action lawsuit that fingered him for misleading investors. This lawsuit, filed back in 2021, was the fallout from his participation in the "FTX: I Am All In" campaign, where he earned the nickname "Shaqtoshi."

Remember when he got slapped with a summons in 2023 outside his Atlanta abode, following multiple failed attempts to reach him? Well, that was his wake-up call.

Shaq wasn't the only celeb dragged into the lawsuit. Plaintiffs were eyeing a staggering $21 billion in damages! But remember, patience is a virtue—this legal battle dragged on for years, with Shaq consistently maintaining that he was just a paid pitchman and had no hidden role in FTX's operations.

In intriguing turns of events, Netflix announced their lead actors for the upcoming FTX series titled, The Altruist. If the deal gets the green light, this settlement money will be channeled towards compensating investors. And guess what, this agreement frees Shaq from any future legal drama related to FTX, and prevents him from dipping his hands into the bankrupt exchange's estate for reimbursements.

Meanwhile, FTX is still mopping up the mess left behind by its 2022 implosion, working on repaying numerous customers and investors.

FTX and Payoneer: Strategy in Repayment

On June 10, 2025, the debt-ridden exchange disclosed a strategic alliance with the payments platform, Payoneer. With this partnership, Payoneer joins BitGo and Kraken in expediting the distribution of funds to creditors who've been left in the lurch.

In February, FTX processed their first wave of repayments, amounting to an impressive $1.2 billion for claimants suffering losses below $50,000. A month later, the exchange unveiled a plan to unleash another $5 billion, aimed at benefiting more creditors during the second round of payments.

The downfall of FTX goes down as one of the cryptoworld's largest financial downturns, triggered by deception, corporate chicanery, and misappropriation of customer funds by higher-ups. The exchange's founder, Sam Bankman-Fried (SBF), is currently behind bars, serving a lengthy 25-year sentence for his role in the crash.

SBF Speaks:

In a rare move, SBF broke his silence from prison, declaring his innocence. Nonetheless, it's apparent that the repercussions of the FTX catastrophe are far from over.

Enrichment Data:The lawsuit against Shaquille O'Neal for his promotion of FTX dates back to 2021, and he has agreed to pay $1.8 million to settle the allegations. The lawsuit, part of a larger legal battle, accuses several celebrities of promoting a "fraudulent scheme" that ultimately led to the collapse of the cryptocurrency exchange. Other defendants, such as Tom Brady and Steph Curry, are still involved in the litigation[1][2][3].

O'Neal initially attempted to distance himself from the lawsuit, claiming that he was merely a paid spokesperson and was unaware of the intricacies of cryptocurrency[3]. However, he reached an agreement for a significant settlement, which is more than the $750,000 he was paid for his promotion role[4]. This settlement may be advantageous for O'Neal, as other defendants could potentially face greater damages[4]. The fall of FTX was sparked by a combination of fraud, corporate misconduct, and dishonest use of customer funds by executives. Its founder, Sam Bankman-Fried (SBF), is serving a 25-year prison sentence for his role in the crash[5].

  1. The sensation surrounding Shaquille O'Neal and his association with the crypto exchange FTX is nearing resolution, as documented by CNBC, with a reported $1.8 million payment to settle a class-action lawsuit.
  2. This lawsuit, stemming from O'Neal's participation in the "FTX: I Am All In" campaign, was initiated in 2021, and he earned the nickname "Shaqtoshi."
  3. Reminisce the incident in 2023 when O'Neal was served with a summons outside his Atlanta residence, after numerous failed attempts to reach him.
  4. O'Neal was not the only celebrity implicated in the lawsuit; plaintiffs sought $21 billion in damages.
  5. In a development pertaining to the unfolding FTX series on Netflix, titled The Altruist, Shaq's settlement money is intended for investor compensation.
  6. This agreement shields O'Neal from future legal disputes with FTX and bars him fromseeking reimbursements from the bankrupt exchange's estate.
  7. Simultaneously, FTX, in partnership with Payoneer, Kraken, and BitGo, is working to distribute compensation to affected creditors, following the exchange's 2022 implosion. This saga of deception, corporate malpractice, and misuse of customer funds has left a lasting impact on the world of crypto, entertainment, finance, general news, crime and justice, and even sports, as exemplified in basketball and the NBA.

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