Shaq Agrees to Pay $1.8 Million to Settle FTX Lawsuit
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TL;DR: Shaq's Settling That FTX Fiasco for $1.8M 🎯
Shaquille O'Neal, the legendary basketball superstar, is shelling out a cool $1.8 million to bid adieu to the legal troubles brewed from his link to the now-defunct crypto exchange, FTX. This tidbit comes to you courtesy of CNBC 📺. The case had been hanging in the courts since the chilly days of November 2022.
SAGA OF FTX: A CELEBRITY SHOWDOWN
Unsurprisingly, some high-profile celebrities joined O'Neal on the star-studded defendant's list, including Tom Brady, Gisele Bunchen, Steph Curry, Naomi Osaka, Larry David, and FTX founder Sam Bankman-Fried 🌟. Interestingly, O'Neal was the sole one still hitching his wagon to the company after the legal papers landed on his doorstep.
Evading serve for months, Shaq finally got hit with not one but two lawsuits during a Miami Heat vs. Boston Celtics match in 2023 at the Kaseya Center — formerly known as the FTX Arena.
Although he was featured in numerous promotions for FTX, Shaq tried to keep his distance from the company following its controversies and bankruptcy. In 2022, he declared to CNBC that he was merely a paid spokesperson for an advertisement and had zero involvement in FTX's operations 🎤.
THE SETTLEMENT: A DIME A DOZEN?
A proposed settlement, submitted in a Florida federal court, alleges that the star power of celebrities gave FTX a veneer of credibility, paving the way for its doomed demise.
The class covers anyone who funneled cash to FTX or held its proprietary token, FTT, between May 2019 and the end of 2022. With the judge's seal of approval, Shaq will part with $1.8 million to cover all legal fees, administrative charges, and compensation for eligible investors.
Now, if you're wondering who'll benefit from this windfall, the class may encompass more than a million individuals, but payouts might be microscopic, possibly less than $2 per person, after fees and costs are deducted.
Image: NurPhoto
Here's a quick run-down of the settlement looming over Shaq and other celebs:
- Amount: $1.8 million, significantly exceeding his reported $750K paycheck from FTX promotions 💰
- Class Impact: Potential payouts could span beyond a million people, but individual payouts may be minuscule 📉
- Context: Shaq promoted FTX in June 2022, but he insisted he was just a paid spokesperson with no operational input 🎬
And the drama doesn't end here! Other celebs like Tom Brady, Stephen Curry, David Ortiz, Shohei Ohtani, Naomi Osaka, and Trevor Lawrence continue to face litigation as the lawsuit unfolds with the potential for mind-boggling damages 💸💸💸.
Note: This is an informal, fly-on-the-wall summary of the article and is intended for swift skimming. If you'd like a more minute-by-minute breakdown, we recommend checking out the full article! 🎉
[1] Enrichment Insight 1[2] Enrichment Insight 2[3] Enrichment Insight 3[4] Enrichment Insight 4
Crypto and entertainment came together in a legal tug-of-war as Shaquille O'Neal, famous basketball player, agreed to pay $1.8 million to escape the court cases related to his association with the collapsed crypto exchange, FTX. Celebrities like Tom Brady, Gisele Bunchen, Steph Curry, Naomi Osaka, Larry David, FTX founder Sam Bankman-Fried, and O'Neal himself were embroiled in the case. In the NBA, Shaq was served with lawsuits during a match at the Kaseya Center, formerly known as the FTX Arena. Despite being a paid spokesperson for FTX promotions, Shaq maintained no operational involvement with the company, even after its controversies and bankruptcy.
