Shaquille O’Neal to Pay $1.8 Million in FTX Class Settlement (1)

Shaquille O’Neal has agreed to pay victims of the FTX collapse $1.8 million to settle claims that he promoted the now-collapsed cryptocurrency exchange, according to a federal court filing.

The classwide settlement is fair and should be given preliminary approval, investors who bought crypto assets through FTX told the US District Court for the Southern District of Florida on Monday.

The retired National Basketball Association star-turned-businessman is among numerous sports figures and celebrities sued as promoters for allegedly enabling the now-bankrupt exchange to engage in fraud. Judge K. Michael Moore ruled in May, after O’Neal announced a settlement in principle, that allegations against celebrities and YouTube influencers for promoting FTX mostly fell short. The investors will be able to re-plead their claims against Tom Brady and other sports and entertainment figures and entities.

O’Neal “partnered” with FTX, the crypto investors allege. FTX sponsored his music festival business, Shaq’s Fun House, and O’Neal posted text and videos about the partnership to social media, including Instagram and Twitter, the plaintiffs say.

Investors also sued FTX insiders, third-party advisers, and others in proposed class actions now consolidated in multidistrict litigation. They’re seeking damages of about $21 billion beyond the estimated $9.2 billion available in bankruptcy court, according to documents filed when the parties sought to streamline competing claims in the two courts.

O’Neal recently obtained final federal court approval for his $11 million class settlement with purchasers of his Astrals and Galaxy nonfungible tokens.

The parties in the FTX case first told the court about a settlement in April, without announcing the terms.

The Moskowitz Law Firm is co-lead counsel for the class. Attorneys for O’Neal include Brown Rudnick LLP.

The case is In re FTX Cryptocurrency Exchange Collapse Litig., S.D. Fla., No. 1:23-md-03076, motion 6/9/25