The years-long legal drama involving basketball star Shaquille O’Neal and his ties to the now-bankrupt crypto exchange FTX is finally coming to an end.
According to a recent CNBC report, Shaquille O’Neal has agreed to pay $1.8 million to settle the class action lawsuit that accused him of misleading investors by promoting FTX.
The lawsuit, originally filed in November, stemmed from his involvement in the “FTX: I Am All In” campaign, where he was dubbed “Shaqtoshi.” He was formally served in 2023 outside his Atlanta residence, after several attempts to reach him.
O’Neal was among several celebrities named in the lawsuit, with plaintiffs seeking up to $21 billion in damages. Since then, the legal battle dragged on for years, during which O’Neal maintained he was merely a paid spokesperson and had no deeper involvement in FTX’s operations.
If approved by the court, the $1.8 million settlement will go towards investor compensation. Additionally, it will clear O’Neal from all future liability related to FTX and prohibit him from seeking reimbursement from the exchange’s bankruptcy estate.
Meanwhile, FTX is still in the process of repaying the thousands of customers and investors impacted by its 2022 collapse.
FTX taps Payoneer to repay creditors
On June 10, 2025, the bankrupt exchange revealed a new partnership with payments platform Payoneer to process creditor settlements. With the partnership, Payoneer will join existing facilitators including BitGo and Kraken in helping to distribute funds to those owed.
FTX processed its first round of repayments back in February, totaling $1.2 billion for claimants with losses under $50,000. In May, the exchange followed up with the announcement of a second-round payment schedule, aimed at distributing an additional $5 billion to more creditors.
The fall of FTX remains one of the largest financial implosions in crypto history, triggered by fraud, corporate misconduct, and misuse of customer funds by executives. Its founder, Sam Bankman-Fried (SBF), is currently serving a 25-year prison sentence for his role in the crash.
