By Kori Hale
- Shaquille O’Neal and Udonis Haslem settle lawsuits over FTX crypto endorsements, highlighting the fallout from celebrity driven financial trends
- Other celebrities still involved in the FTX litigation include case include Steph Curry, David Ortiz and Tom Brady
Three time NBA champion Undonis Haslem settled out of the ongoing FTX litigation. He joins former Miami Heat teammate Shaquille O’Neal, who may have dominated on the basketball court, but his off-court moves in crypto haven’t aged quite as gracefully. The NBA Hall of Famer previously agreed to a $1.8 million settlement in a class action lawsuit over his role promoting FTX, the now-defunct cryptocurrency exchange. O’Neal and Haslem were among several high-profile athletes and celebrities caught in the crosshairs when the $32 billion company collapse.
Why This Matters: As celebrity backed crypto ventures fall under sharper scrutiny, the FTX fallout has become a cautionary tale, especially for vulnerable communities often targeted by influencer marketing. Celebrity crypto endorsements have played a major role in legitimizing platforms that lacked regulation and transparency.
In communities where trust in traditional financial systems has historically been low, figures like O’Neal and Haslem carry enormous influence. A Pew Research study, found that Black Americans are more likely than white Americans to have invested in or traded cryptocurrency, making the stakes even higher when things go sideways.
The class action lawsuit accused O’Neal, Haslem, and others of promoting unregistered securities and failing to disclose compensation received for endorsements. These are violations that the SEC has aggressively targeted.
Even though both men denied wrongdoing, O’Neal agreed to pay $750,000 in cash and $1.05 million in FTX equity to settle. Haslem’s settlement amount remains private, but his inclusion adds another layer to the conversation around trust, accountability, and the limits of cultural capital in the financial world.
Crypto Marketing Blitz: FTX built its empire by aggressively pursuing celebrity endorsements. These stars brought mainstream credibility to its platform before its eventual collapse. Here are a few of the celebrity partnerships that stood at the heart of FTX’s strategy:
- Tom Brady and Gisele Bündchen got equity stakes in FTX worth approximately $48 million
- Stephen Curry starred in commercials
- Shaquille O’Neal backed the platform on social media
- David Ortiz pushed viewers to join the “FTX list”
- Trevor Lawrence, Naomi Osaka, and Larry David joined as brand ambassadors
Influence and Investment: Haslem, known for his leadership both on and off the court, had built a reputation for being community focused in Miami and beyond. His name lent an air of authenticity to FTX’s outreach. That makes his inclusion in the lawsuit, and now the settlement, all the more significant. For many, it reflects the fine line between influence and responsibility when culture intersects with commerce.
It’s important to note that Shaq’s settlement amount exceeds what he was reportedly paid by FTX, suggesting legal consequences are intensifying, even for high-profile figures. And Haslem’s quiet exit from the litigation may reflect a strategic desire to move past the scandal, but it still adds to a growing list of celebrity crypto endorsers being held accountable.
Celebrity-less Credibility: Needless to say that with this type of celebrity packed roster, FTX’s dramatic fall shocked the crypto world. The company, once worth $32 billion, ranked as the world’s third-largest cryptocurrency exchange. In the Fall of 2022, people learned that founder Sam Bankman-Fried had stolen billions in customer funds.
This affected more than a million people. U.S. courts sentenced Bankman-Fried to 25 years in prison in March 2024. The settlement looks big on paper, but court documents show each person in the class action might get less than $2 after legal fees.
What’s Next: The SEC’s enforcement started before the FTX collapse. Kim Kardashian settled with the SEC for $1.26 millionafter she failed to disclose her $250,000 payment for promoting EthereumMax tokens. Floyd Mayweather paid over $600,000 to settle charges about undisclosed promotion of initial coin offerings. DJ Khaled had to pay more than $150,000 because he didn’t disclose Centra Tech’s $50,000 payment.
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