The settlement terms remain sealed and are pending final court approval. However, its resolution marks a significant milestone in a wider legal campaign targeting celebrities who allegedly misled investors by lending their public image to FTX’s aggressive marketing efforts.
O’Neal was one of several celebrities named in the case, which also includes NFL quarterback Tom Brady, supermodel Gisele Bündchen, NBA star Stephen Curry, comedian Larry David, and others. Plaintiffs argue these high-profile figures played a material role in giving legitimacy to FTX, leading retail investors to trust the platform prior to its collapse in November 2022.
FTX’s downfall came after reports of financial mismanagement and misuse of customer funds emerged, culminating in the arrest of founder Sam Bankman-Fried, who was later convicted on seven counts of fraud and conspiracy. Investors lost billions in what has been dubbed one of the most significant corporate failures in crypto history.
O’Neal’s involvement became particularly controversial after a protracted legal struggle just to serve him with court documents. For months, attorneys from the Moskowitz Law Firm, which represents FTX investors, attempted to locate O’Neal. Their efforts included ambushing him outside TNT Studios in Atlanta and tracking his appearances at public events.
He was finally served at his Atlanta residence in April 2023 after a process server slipped legal papers through the gates of his home, with the incident reportedly captured by surveillance footage. Legal representatives described the service process as one of the most challenging in the broader case.
Despite denying any responsibility, O’Neal eventually agreed to settle the case. His attorneys did not admit liability and framed the agreement as a way to move on from an increasingly drawn-out legal process.
The FTX lawsuit isn’t the only crypto-related legal battle O’Neal has faced. Earlier this month, the retired basketball icon also settled a separate case involving his promotion of the Astrals NFT project — a Solana-based collection of 10,000 space-themed digital avatars.
The twin settlements involving O’Neal underscore the legal vulnerabilities facing celebrities who promote digital asset products. While influencers and public figures have long endorsed traditional financial products, the regulatory framework surrounding crypto is still evolving — and so is the understanding of what constitutes misleading advertising or securities violations.
Lead attorney Adam Moskowitz, who represents plaintiffs in both the FTX and Astrals NFT cases, has emphasized that celebrity status does not exempt individuals from accountability. He has argued that public figures who endorse financial products have a responsibility to understand the associated risks and ensure transparency in their promotions.
The U.S. Securities and Exchange Commission has previously issued warnings to celebrities and influencers, urging them to disclose payments and sponsorships tied to digital asset promotions.
As regulatory scrutiny intensifies, legal experts believe these high-profile settlements may influence future endorsements and shape how celebrities approach crypto-related partnerships. The FTX saga has become a turning point in how the crypto industry, and those who market it, are held accountable.
NBA Hall of Famer Shaquille O’Neal. (Lev radin/Shutterstock)
