An American former professional basketball player, Shaquille O’Neal, has reached a $1.8 million settlement to resolve claims that he promoted FTX, the now-defunct crypto exchange.
The money will be used to cover legal costs, administrative fees, and repayments to people who used the platform or held its token, FTT, between May 2019 and the end of 2022.
The deal still needs approval from a federal court in Florida. If approved, the case will be officially closed. O’Neal will also be protected from any future legal action related to this matter and will not be able to claim money from FTX’s bankruptcy process.
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This lawsuit claimed that O’Neal played an active role in encouraging people to invest in FTX, which has been accused of offering unregistered securities. He once appeared in a commercial saying he was “all in” on FTX, but later admitted he did not fully understand crypto.
Previously, O’Neal made headlines for avoiding legal documents. Lawyers from the Moskowitz Law Firm said they had to wait outside the TNT studios in Atlanta just to hand him the complaint. Court records indicated that he was paid around $750,000 for his promotional work with the exchange.
O’Neal’s legal team told CNBC they were happy to have resolved the matter.
Recently, a federal judge dismissed most of the legal claims against several celebrities who promoted FTX, including Tom Brady, Kevin O’Leary, and Stephen Curry. What led to the decision? Read the full story.
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