FOX Business Flash: Update on Shaquille O'Neal and FTX Legal Settlement
Shaq agrees to shell out approximately $2 million in a court settlement linked to FTX lawsuit.
Here's what's poppin' on FoxBusiness.com.
Shaquille O'Neal has splashed out a cool $1.8 million to settle a class-action lawsuit that also dragged in other big-name athletes. The lawsuit left a sour taste after O'Neal was accused of hyping up the now-defunct cryptocurrency like it was gonna rain greenbacks.
Legendary sports icons like Tom Brady, Stephen Curry, and Naomi Osaka, along with David Ortiz, Shohei Ohtani, and Trevor Lawrence, were all named in the lawsuit as individuals who had a hand in FTX transactions.
However, O'Neal, a former basketball powerhouse, claimed he was just a paid spokesperson for a commercial and had no hidden agenda.
FTX FiascoBefore its crash and burn, FTX was the third-largest cryptocurrency exchange on the block. But alas, it turned out to be a financial fool's gold, with billions of dollars lost and no way out but bankruptcy. The company and its founder Sam Bankman-Fried found themselves under investigation for investing customers' funds in unknown ventures without their approval.
Brady, who sunk $30 million into FTX and acted as its ambassador, apparently lost his funds when the exchange tanked in November 2022[1].
The Fall of Sam Bankman-FriedBankman-Fried eventually got his just desserts. He was sentenced to 25 years in stir, with the judge estimating customers lost $8 billion, investors $1.7 billion, and lenders to Alameda Research, the hedge fund Bankman-Fried founded, lost a whopping $1.3 billion due to his actions[2].
Bankman-Fried was found guilty of wire fraud and conspiracy charges following the collapse of FTX in November 2023, a debacle dubbed the "crypto Enron"[3]. He’s also expected to pay restitution for the damages caused[3].
AftermathNot long after FTX's fall from grace, the Miami Heat's arena, previously called FTX Arena, was swiftly renamed[4]. O'Neal played ball for four seasons with the Heat, winning the championship in 2006.
Fox Business' Greg Norman, Suzanne O'Halloran, and the Associated Press contributed to this report.
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Resources:
[1] CNN[2] The New York Times[3] Bloomberg[4] ESPN
- The class-action lawsuit involving Shaquille O'Neal and other celebrities targeted their endorsements of the cryptocurrency trading platform FTX.
- Trading in cryptocurrency markets can be associated with both investment opportunities and legal controversies, as evidenced by the FTX case.
- Funds invested in crypto assets such as FTX can be at risk, as seen when FTX faded away, causing losses to investors like Tom Brady.
- Politicians and regulators may scrutinize the activities of cryptocurrency exchanges like FTX, which raised funds and made investments without proper authorization.
- The fall of Sam Bankman-Fried, founder of FTX, led to 25 years in prison, millions of dollars in losses, and a continued investigation into the affairs of his other ventures like Alameda Research.
- General news outlets such as FOX Business, CNN, The New York Times, Bloomberg, and ESPN report on events in the world of sports, politics, crime, and finance, providing insight into diverse aspects of society.
- The interest and involvement of celebrities in various industries, including sports, entertainment, and crypto markets, contribute to their overall financial portfolios and popular culture, instigating ongoing discussions in the media and capital markets.
