The long-running legal battle involving NBA legend Shaquille O’Neal and the now-defunct crypto exchange FTX is finally winding down. According to a June report from CNBC, O’Neal has agreed to pay $1.8 million to settle a class action lawsuit that accused him of misleading investors through his promotional role in the FTX marketing campaign.
“Shaqtoshi” No More: The FTX Campaign Fallout
The lawsuit, initially filed in November 2022, stems from O’Neal’s involvement in the infamous “FTX: I Am All In” campaign, where he was nicknamed “Shaqtoshi” in a nod to Bitcoin’s mysterious creator. Though he claimed he was merely a paid spokesperson, plaintiffs argued that his celebrity endorsement helped lend credibility to what turned out to be one of the biggest financial collapses in crypto history.
O’Neal was among a roster of high-profile celebrities named in the suit, which sought as much as $21 billion in damages for affected investors. After months of legal evasion, he was eventually served outside his Atlanta home in 2023.
Terms of the Settlement
If approved by the court, the $1.8 million payout will go toward compensating investors. The settlement also includes a provision that clears O’Neal of all future liability related to the FTX collapse and prevents him from seeking reimbursement from the exchange’s bankruptcy estate.
The move may close the chapter on his personal legal woes, but it underscores the larger conversation around celebrity accountability in crypto promotions a space that has seen regulators crack down heavily on misleading endorsements.
FTX Creditors Begin to See Repayments
While O’Neal’s case settles, FTX is still in the process of reimbursing the thousands of investors impacted by its dramatic 2022 collapse. On June 10, 2025, the bankrupt exchange announced a new partnership with Payoneer, which will now help facilitate creditor repayments alongside existing partners BitGo and Kraken.
FTX first began issuing repayments in February, distributing $1.2 billion to claimants with losses under $50,000. In May, the exchange outlined plans to deliver an additional $5 billion to more creditors as part of a second payment round.
A Dark Chapter in Crypto History
FTX’s downfall continues to serve as a cautionary tale. Once seen as a titan in the crypto space, the exchange crumbled under revelations of fraud, poor corporate governance, and misuse of customer funds. Its founder, Sam Bankman-Fried, is currently serving a 25-year prison sentence for his central role in the collapse.
Meanwhile, Netflix has announced a dramatized series about the exchange’s rise and fall, titled “The Altruist,” further cementing FTX’s place in financial history.
With Shaquille O’Neal’s $1.8 million settlement and FTX’s ongoing creditor repayments, the dust is finally beginning to settle on one of crypto’s most scandalous chapters. As legal and financial cleanup continues, the saga remains a stark reminder of the risks of unchecked hype, celebrity endorsements, and opaque crypto operations.
