Shaquille O’Neal’s name may be off the FTX lawsuit, but the fallout is far from over. His $1.8 million settlement came after promoting a crypto giant that spectacularly crumbled. Meanwhile, celebrities like Tom Brady and Stephen Curry are still deep in legal limbo. Add a shocking Instagram hack to the mix, and it’s clear — Shaq’s recent weeks have been a high-stakes reality check on digital trust.
Shaquille O’Neal becomes first celebrity to settle in FTX lawsuit while others still face legal heat
Shaquille O’Neal, once the face of FTX advertisements, became the first celebrity to settle a class-action lawsuit. The lawsuit, initiated in 2023, was aimed at investors who had either bought FTX tokens or deposited funds between May 2019 and late 2022. It alleged that O’Neal, along with Tom Brady, Stephen Curry, and others, made deceptive endorsements that were part of one of the largest financial disasters in the crypto world.Formally lodged in June 2025 with the U.S. District Court for the Southern District of Florida, the settlement comprises O’Neal’s $750,000 in cash and $1.05 million in FTX stock. Under the agreement, he is required to pay within 30 days of the court’s approval, he cannot seek reimbursement from FTX’s bankruptcy estate, and he is granted protection from any future claims regarding this case.FTX hit a peak valuation of around $32 billion, but it went under in November 2022 after it was revealed that its founder, Sam Bankman-Fried, had taken customer funds for personal use. He was sentenced to 25 years in prison in March 2024.Raw endorsements played a major role in FTX’s expansion. Shaq, Brady, Curry, Naomi Osaka, Trevor Lawrence, Gisele Bündchen, David Ortiz, Shohei Ohtani, and comedian Larry David all appeared in FTX ads or campaigns. While O’Neal opted to settle, other defendants are still facing lawsuits; a judge restricted the case in May 2025 but maintained claims related to the sale of unregistered securities under Florida and Oklahoma law.If the crypto settlement wasn’t enough to get your heart racing, Shaquille O’Neal also became a victim of an Instagram hack in July 2025. Unauthorized posts with fake winning screenshots and promotions from the account @mrsjoyce_ tried to fool his 35 million followers into a gambling/crypto scam. Thankfully, the hack was resolved swiftly and Shaq got his account back, but it really showed that even verified accounts can be targets for cybercrime.Also Read: LaMelo Ball watches courtside as Liam McNeeley scores 22 to lead Charlotte Hornets past Utah JazzHigh-profile endorsements might bring legal issues if they misrepresent and cause financial loss. O’Neal’s settlement is likely only the tip of the iceberg, with others possibly facing billions in liabilities. Even celebrity accounts aren’t immune to hacks; social media users should be wary of scams.
