Shaquille O’Neal Settles Lawsuit Over FTX Promotion for $1.7 Million
On Tuesday, April 1, 2025, Law.com reported that a lengthy effort to serve court papers to Shaquille O’Neal, the 7’1″ NBA Hall of Famer, sports analyst, and entertainer, has culminated in a $1.7 million settlement related to a class action lawsuit involving the collapsed cryptocurrency exchange FTX. The lawsuit sought accountability from individuals who promoted FTX, which resulted in substantial financial losses for investors.
Adam Moskowitz, managing partner at the Moskowitz Law Firm in Coconut Grove, Florida, and David Boies, chairman emeritus of Boies Schiller Flexner in New York, serve as lead counsel for the class of investors. According to Moskowitz, the settlement is the largest individual promoter payment to date in the ongoing case, although it remains significantly less than the billions of dollars sought from other high-profile promoters such as Gisele Bündchen and Tom Brady.
Christopher E. Knight, managing shareholder at Fowler White Burnett and part of O’Neal’s legal team, chose not to comment on the settlement. O’Neal had previously promoted FTX during a carnival event in February 2022, titled “Shaq’s Fun House Los Angeles Presented by FTX,” which featured performances by notable artists, including Dwayne “Lil Wayne” Carter and DJ Diplo. Following the collapse of FTX, O’Neal reportedly minimized his role as an ambassador for the event.
The lawsuit against O’Neal arose in November 2022, when FTX investors initiated legal action against its founder, Samuel Bankman-Fried, along with various celebrities who had endorsed the now-defunct exchange. Other prominent figures named in the lawsuit included Gisele Bündchen, Tom Brady, and Larry David.
O’Neal’s attempts to avoid being served were noted, with Moskowitz describing it as a “silly service sideshow.” Eventually, he was served while leaving his residence in Georgia, an event captured on home surveillance footage.
The legal documents delivered to O’Neal included a complaint regarding FTX and a proposed class action lawsuit related to the Astrals Project. On the same day as the settlement announcement, U.S. District Senior Judge Federico Moreno of the Southern District of Florida approved an $11 million settlement in the Astrals litigation, which also involved O’Neal.
Moskowitz has been proactive in securing settlements with other celebrities tied to cryptocurrency promotions, including NASCAR driver Landon Cassill and former NFL star Rob Gronkowski, both of whom were linked to the failed cryptocurrency platform Voyager. He has also pursued claims against NBA player Jimmy Butler and crypto influencer Ben Armstrong for their associations with Binance.
Despite the settlement, Moskowitz emphasized that the legal battle is far from over. He, along with partner Joseph M. Kaye and litigators José Ferrer and Desiree Fernandez from Mark Migdal Hayden, continues to seek justice for investors affected by fraudulent schemes.
Moskowitz stated, “O’Neal is not admitting to doing anything wrong, but he agreed to stand up and help his fans who relied on him for promoting FTX and Astrals.” He also highlighted the challenges faced by victims of failed non-fungible tokens, noting that many have no means of recovery.
Source: Law.com
