If you’re a hoops aficionado, you probably know Shaquille O’Neal, also known as Shaq, as the championship-center champ and larger-than-life personality with a knack for being a jokester. Shaq is in the news today, however, for something other than his on-court achievements.
He’s shelling out $1.8 million to resolve a class-action lawsuit that sued him for hawking FTX, a cryptocurrency firm that went up in flames in one of the shockers this year.
Why Shaq was sued in the FTX case
Shaq was only one of many celebrity endorsers who partnered with FTX to sell their business. Shaq was a compensated celebrity and not an investment counselor, and in June of 2022, Shaq showed up on TV advertisements promoting FTX.
But when FTX collapsed—losing over $8 billion of its customers’ money—questions had to be answered. Why did Shaq and other celebrities promote a business that seemed shady?
The company collapsed
FTX was the globe’s third-largest cryptocurrency exchange. But everything came crashing down in November 2022. Its owner, Sam Bankman-Fried, was charged with using customer deposits to cover business transactions without their knowledge.
The collapse was humongous—FTX collapsed overnight, wasting tremendous amounts of investors’ money. The collapse is being referred to as “the Enron of cryptocurrency.”
Other notable names were also attracted
Shaq is not the first celebrity to be listed as a defendant by FTX. Other sports legends like all-time NFL passer Tom Brady, NBA great Stephen Curry, Shohei Ohtani, Naomi Osaka, David Ortiz, and Trevor Lawrence were all listed as defendants in the case, along with Shaq.
They were charged with “controlled, promoted, assisted, and actively participated in FTX transactions.”
Shaq’s $1.8 million settlement
To end this courtroom battle, Shaq had agreed to pay $1.8 million. Shaq was “a mere paid promoter of an ad” and did not have an active role in FTX’s operations, his lawyers contended. Nevertheless, the settlement ends the controversy and lets him close the book.
FTX collapse led to time behind bars
Meanwhile, FTX founder Sam Bankman-Fried was convicted in November last year on two counts of wire fraud and five counts of conspiracy. He just got sentenced to 25 years in prison.
A federal judge explained that FTX clients lost approximately $8 billion, FTX investors lost approximately $1.7 billion, and the creditors of the related hedge fund Alameda Research lost another $1.3 billion.
Final thoughts
This is the story of how fame finally catches up with a star when businesses collapse. Shaq may have gotten a fat check for promoting FTX, but ultimately, it cost him a ransom—nearly $2 million—to clean up the mess.
So if you’re thinking about investing in something, it’s a smart move to do your research first and not just follow the endorsements of your favorite athletes or celebrities.
Here are some of the articles you can read later: Neither California nor New York: these are the states with the top real estate markets of 2025
