Shaquille O’Neal has been named in a class action settlement with investors who lost billions when the cryptocurrency exchange FTX fell apart. The settlement resolves claims under the False Claims Act against O’Neal. He was accused of having promoted FTX and the Astrals NFT project, which purportedly cost investors their life savings. The terms of the agreement remain confidential.
O’Neal became involved by endorsing the Astrals NFT project. This Solana-based project includes a collection of 10,000 NFTs, their own metaverse and a governance token, known as Galaxy. He was one of dozens of celebrities and athletes who were sued for misleading people into promoting FTX. We’re talking about power players like Tom Brady and Gisele Bündchen. Just as with the suit against O’Neal and other celebrities, the damages sought exceed the $9.2 billion that could be distributed through bankruptcy proceedings.
The legal process to serve O’Neal ended up being difficult. His legal teams had spent months unsuccessfully attempting to contact him. They even went to unusual lengths, including confronting him at NBA games and showing up at his homes.
"running from the lawsuit" - lawyers representing the victims - Court Listener
It took until May 2023, when O’Neal was finally served during an NBA game at Miami’s Kaseya Center. He was charged with unlawfully offering unregistered securities to investors through the Astrals NFT project.
In a remarkable decision, a Miami federal court judge ruled in August 2024. O’Neal now has to answer the multitude of allegations put forth in the amended complaint. He was sued as one of the defendants in a massive, countywide multidistrict litigation. This civil enforcement initiative seeks to find damages of up to $21 billion from FTX insiders, advisers, and promoters. O’Neal and the other defendants named in the class action lawsuit were accused of having played a role in investor losses by endorsing FTX.
