SHAQ signs $ 1.8 million to finish its encryption drama

Finally, the O’Neill user can breathe a sigh of relief. The basketball legend has turned into a businessman and the TV personality agreed to pay $ 1.8 million to settle a collective lawsuit about his role in promoting the exchange of cryptocurrencies now.

While the batch closes a legal chapter for the previous lenker, it also represents a turning point in how the courts deal with celebrity approvals in the volatile world of encryption, a space where stardom has once provided both noise and cover.

O’Neal is among the first big names that reach a settlement in the prominent FTX case, which is also called the football legend Tom Brady, his former wife Giselle Bondchen, the American Professional League star Steve Curry, tennis Naomi Osaka, and Senefield Larry David. Some claims against these celebrities, who say they were not aware of the dangers, have already been rejected.

But O’Neel’s decision to settle it.

He was accused of promoting FTX to his fans and investors, as he appeared in a series of marketing campaigns. On the other hand, it was claimed that the company sponsored its House’s Fun House. According to the lawsuit, O’Neal promoted partnership through social media publications and videos. He claimed that he paid $ 750,000 to support him.

“Prosecutors seek relief at the level of separation from Mr. O’Neill, who was an alleged influential and celebrity pushed by FTX to introduce FTX to his followers and attend events as a safe and legal alternative to other encrypted stock exchanges, Corct (FTX Cryptocurrency Proofmed Propers Progress, Dockket 1: 23-MD-0306, SD.

A preliminary settlement was reached last November. It was revealed in May by the court, and on June 9, the final agreement of $ 1.8 million was presented at the American Provincial Court of the southern region of Florida by Adam Moskovic, the prosecutor’s lawyer. O’Neal should pay the amount within 30 days.

FTX, who applied for bankruptcy of Chapter 11 on November 11, 2022, has become a tycoon, partly due to celebrity ambassadors. But behind the scenes, the platform used customer assets as a guarantee to borrow the money that was transferred to its sister company, Alaameda Research, for trading and investments. When the cards council collapsed, the two companies crossed, which sparked lawsuits against the founder Sam Bangan Farid, his internal circle, and the stars who supported the brand.

O’Neil settlement is not only related to the dissolution of his personal responsibility. It is an invitation to wake up to celebrities who were spent in the encryption boom without understanding or completely detecting risk.

“I don’t understand it,” O’Neill told CNBC in 2021 about cryptocurrencies. “So, I may stay away from him until I get a full understanding of what it is.” He added: “From my experience, it is very good to be true.”

However, it is not far away.

Since the collapse of FTX, organizers such as the Securities and Stock Exchange Committee and the Federal Trade Committee have coordinated unintended coding approvals. SEC now emphasizes “fair disclosure” and “financial literacy”, warning that fame is no longer a shield.

Celebrity message is unambiguous: If you promote it, it is now expected to “own”, even if the project collapses.

This is not the only legal headache related to encryption. Last November, he was ordered to pay $ 11 million to settle a separate lawsuit that includes Astrals, a failed unsuccessful project (NFT) who participated in its founding with his son Miles O’Neill. (NFTS is digital holdings that can be possessed, sold or traded online. But after FTX, it was said that Shak distanced himself from the project, leaving investors to defend themselves.

Now, with $ 12.8 million of encryption settlements under his belt, O’Neal may think twice before submitting his name to another encryption project.