Former NBA player Shaquille O’Neal will pay $1.8 million to settle a class action lawsuit related to the demise of cryptocurrency exchange FTX
ByMICHELLE CHAPMAN AP business writer
Former NBA player Shaquille O’Neal will pay $1.8 million to settle a class action lawsuit related to the demise of cryptocurrency exchange FTX.
O’Neal, and other celebrities like Tom Brady and Stephen Curry, were named in the lawsuit in 2022. They had been accused of touting FTX as a reputable and trustworthy investment option via paid endorsements. The proposed settlement only pertains to O’Neal.
Three years ago FTX was the third-largest cryptocurrency exchange, but it ended up with billions of dollars worth of losses and had to seek bankruptcy protection. The Bahamas-based company and its founder, Sam Bankman-Fried, came under investigation by state and federal authorities for allegedly investing depositors funds in ventures without their approval.
Before its failure, FTX was known to use high-profile Hollywood and sports celebrities to promote its products. It had the naming rights to a Formula One racing team as well as a sports arena in Miami. Its commercials featured “Seinfeld” creator Larry David, as well as Brady, t