Former NBA player Shaquille O'Neal has been served legal papers in a class-action lawsuit related to cryptocurrency exchange platform FTX. The lawsuit claims that celebrities endorsed FTX without conducting adequate due diligence. O'Neal, who previously appeared in an FTX commercial and hosted a music festival sponsored by the exchange, has denied any involvement with FTX beyond his role as a paid spokesperson. Other celebrities named in the lawsuit include Tom Brady, Gisele Bündchen, Stephen Curry, and Larry David.
Moskowitz Law Firm, which represents the plaintiffs, tweeted that O'Neal was served outside his home and warned him not to destroy or erase any security tapes. The lawsuit was filed in November after FTX's collapse. FTX has recovered $7.3 billion and may relaunch its business in the second quarter of 2024.
The case centers on whether or not celebrities promoting FTX knew enough about the company before endorsing it. If they did not conduct adequate due diligence, they could be found liable for any losses incurred by investors who relied on their endorsement.
This lawsuit comes as the cryptocurrency market has been under increased scrutiny from regulators and investors alike. The market has been volatile, with prices fluctuating wildly, and the risks associated with investing in cryptocurrencies have become more apparent.
FTX's collapse and subsequent recovery are a reminder of the risks involved in investing in cryptocurrencies. While the market has the potential for significant gains, investors must also be aware of the potential for significant losses.
As for the lawsuit, it remains to be seen how it will play out in court. The celebrities named in the suit have denied any wrongdoing and will have the opportunity to present their case in court. Whatever the outcome, this case serves as a cautionary tale for both investors and celebrities alike.