In a lawsuit against FTX, the NBA star turned TV analyst was listed among NFL veteran Tom Brady, comedian Larry David, and tennis player Naomi Osaka. The case claimed that celebrities who advocated the platform gave it credibility.
Shaquille O’Neal justified his appearance in advertisements for the defunct cryptocurrency company FTX, claiming he was “simply a paid ambassador.”
The NBA player-turned-television analyst was listed in a class-action lawsuit against the exchange last month, which stated that the platform’s reputation was bolstered by celebrities who advocated it.
It is argued that O’Neal, NFL veteran Tom Brady, comedian Larry David, and tennis champion Naomi Osaka were therefore just as responsible as FTX founder Sam Bankman-Fried, who has been accused in connection with its demise.
O’Neal, who appeared in a June advertisement for the company, said he had no actual participation.
“Many people believe I’m engaged, but I was only a paid spokesman for an advertisement,” he told CNBC Make It.
He continued, “From my perspective, [crypto] seems too wonderful to be true.”
“I don’t understand it, so I will likely avoid it until I have a complete knowledge of what it is,” he added.
How did FTX harness star power?
The key to FTX being one of the world’s largest digital currency exchanges was its user-friendly interface, which made purchasing cryptocurrencies with fiat currency simple.
It reached a peak value of $26 billion (£21 billion) under the unusual leadership of Bankman-Fried, as it won naming rights for sports stadiums and a growing number of celebrity endorsements.
O’Neal stated in a June advertisement that he was “partnering with FTX to make crypto accessible to everyone.”
Noting that he checks his FTX account daily, he added: “I’m all in. Are you?”
50-year-old O’Neal told CNBC that he was not “heavily connected” with the company or bitcoin in general.
“People recognize my extreme candor. There is nothing to conceal, “he said.
“If I were actively involved, I would be the first one to say “Hey.” However, I was merely a paid mouthpiece.”
He noted that he had declined other invitations to endorse cryptocurrencies, which are facing rising requests for regulation as governments respond to the FTX problem.
The US Securities and Exchange Commission termed it “one of the worst financial frauds in American history,” and Bankman-Fried faces a maximum of 115 years in prison if convicted of all eight counts of fraud and campaign finance law violations.
The celebrity endorsers of FTX have been named in a lawsuit filed in the southern district of Florida.
It is said that the company’s exploitation of “some of the most recognizable names in sports and entertainment” helped “keep the entire scheme afloat.
