Shaq named in FTX lawsuit but ‘knows nothing about crypto’

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Amid growing fallout and ongoing lawsuits involving anyone connected to the FTX collapse, one person wants you to know they had nothing to do with it. That person is Shaquille O’Neal.

The NBA Hall of Famer told CNBC he was “just a paid spokesperson for a publicity,” regarding his involvement with the now bankrupt cryptocurrency exchange.

Shaq responds to a lawsuit regarding his involvement in the FTX lawsuit. (Photo by Rich Fury/Getty Images)SHAQ IS ON A LIST OF CELEBRITIES NAMED IN THE TRIAL

O’Neal has been named in a class action lawsuit. It alleges that FTX spokespersons “controlled, promoted, aided and actively participated in FTX Trading and FTX US transactions.”

The lawsuit has drawn a lot of attention as other well-known stars like Tom Brady, Steph Curry, David Ortiz and comedian Larry David have also been named.

In an interview last year, Shaq told CNBC “I don’t understand crypto.” However, he later appeared in various cryptocurrency advertisements. Shaq even changed his Twitter handle to “Shaq.ETH” and “Shaq.SOL”, both references to cryptography.

As any prosecutor will tell you, ignorance of the law is not always a reliable defense. “I didn’t know” doesn’t mean you still can’t be held accountable for your actions.

CLAIM CLAIM CELEBRITIES DELIBERATELY DECEIVED INVESTORS

O’Neal appeared in a June FTX ad in which he said, “I’m thrilled to be partnering with FTX to help make crypto accessible to everyone…I wholeheartedly agree. And you? He also told viewers that he checks his FTX account “daily.”

Now Shaq says he was ‘just a paid spokesperson’ for the ad and he ‘doesn’t understand it, so I’ll probably stay away from it. [crypto].”

But is it too little too late for this defense now with lawsuits already underway?

It is unclear how much Shaq was paid under his sponsorship deal.

“Shark Tank” entrepreneur and investor Kevin O’ Leary, who was named in the same lawsuit, told CNBC that he himself was paid $15 million and lost it all.

Last week, he testified on Capitol Hill before the Senate Banking Committee. “We need to get to the bottom of what happened at FTX, but we can’t let its collapse cause us to abandon the great promise and potential of crypto,” O’Leary said.

FTX FOUNDER SAM BANKMAN-FRIED WAS ARRESTED THIS WEEK

One of the main plaintiffs in the class action is Sunil Kavuri. He claims he relied on the paid endorsement of Shaq and the other celebrities when he purchased the crypto assets. He alleges he was duped by their “false statements” and “omissions”.

Personally, if some of the top economists don’t understand how crypto, bitcoin, exchanges, and other cryptocurrency buzzwords work, I highly doubt Shaq is an expert. He’s a fun guy and I would love to party with him. But I’m not running to any of my friends to tell them to be part of FTX because everyone’s SHAQ says it’s okay.

The bankruptcy of FTX shook the financial and political world. Users of the service lost billions of dollars after its collapse. Its founder, Sam Bankman-Fried, was recently arrested for fraud and money laundering.

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