The drama isn’t over for Shaquille O’Neal and the FTX litigation. Four-time NBA champion Shaq served as a paid spokesperson for FTX and its Astral NFTs program. Though crypto wasn’t his first choice, events unfolded unexpectedly. Some time after Shaq joined, the company fell apart. He joined a class-action suit alleging that celebrity promoters misled investors by marketing unregistered securities. Even after Shaq’s settlement, investors are now targeting promoters for $21 billion in additional damages.

In August 2024, a Florida judge ruled Shaq had no managerial role at FTX—yet acknowledged his high-profile endorsements. As plaintiffs press for $21 billion in additional damages, O’Neal’s lawyers stress he was merely a paid spokesperson. Not a decision-maker. As per Bloomberg, the 4x NBA champ has agreed to pay $11 million to a class-action settlement fund. The number is yet to be confirmed. In November, a federal judge approved Shaq’s settlement; Judge Moreno affirmed it this month.

Recent filings show investors seeking an additional $21 billion from FTX’s backers. This is on top of the $9.2 billion in customer claims already before the bankruptcy court. Though the consolidated litigation names multiple stars, Shaq’s individual exposure should be capped by his separate settlement. 

The settlement covers anyone who bought Astrals NFTs from May 2022 to Jan. 15, 2023, and $2.9 million of it will reportedly be allocated to attorneys’ fees and costs. “So much credit goes to Shaq personally for wanting to help all of the other victims, and to our federal judges,” Adam Moskowitz (lawyer representing people who sued Astral) said. Since the lawsuits began, O’Neal has remained silent, relying on counsel to manage his defense.

Shaquille O’Neal wasn’t initially interested in Crypto

Shaq openly admitted in a January 2022 CNBC interview that he “didn’t understand” cryptocurrency and planned to “stay away from it until I get a full understanding of what it is”. Despite his legendary business instincts—owning stakes in restaurant chains, gyms, and esports—he regarded the crypto world as opaque and high-risk. Multiple NFT and crypto firms, including Impact Theory and Dapper Labs, courted Shaq for partnerships throughout 2021, drawn by his social-media reach.

However, after months, he seemingly agreed and was reportedly seen promoting FTX and Astral NFTs. In mid-2021, the ex-Los Angeles Lakers star featured in an FTX commercial, declaring, “I’m excited to be partnering with FTX to help make crypto accessible to everyone. I’m all in. Are you?” Shortly afterward, he began promoting the Astrals NFT collection—tweeting giveaway contests and appearing in Discord AMAs where he urged fans to “hop on the wave before it’s too late.”

But after  FTX fell apart, Shaq backed away, saying he was just a paid spokesperson and not deeply involved. However, investors lost money, and lawsuits followed. Even after settling, O’Neal remains entangled in FTX’s ongoing litigation.

As the FTX saga makes clear, celebrity endorsements in unregulated markets can cut both ways. While marquee names can lend instant legitimacy, they also become prime targets when ventures implode. Shaq’s seven-figure settlement may close the door on Astral NFT claims, but the broader $21 billion push and ongoing lawsuits against other athletes show that courts are willing to hold promoters to account.