Shaq sued over FTX promotions
by Kay Lewis Date posted: March 14, 2023
Shaquille O’Neal is appointed in a new trial, having avoided the FTX lawsuit filed against CEO and founder Sam Bankman-Fried.
Shaq heavily promoted the Crypto Company
FTX went down big last November and then suddenly Bankman-Fried filed for bankruptcy – 1 month later he was arrested and accused of defrauding clients and using it to merge with a company called Alameda Research for his own personal gain.
Before the company went bust, Shaq was one of the backers, or as he called it, a “spokesman.” In 2022, before the company went out of business, Shaq spread the word about FTX. He wasn’t the only one, with plenty of other celebrities signing on board to use their celebrity to lure potential investors.
It worked! Bankman-Fried rotated the dough until it slipped. Specifically, Shaq promoted the company on Twitter in June and extended a code for new users to receive some kind of bonus upon signing up.
“I’ve teamed up with @FTX_Official to help make crypto more accessible to everyone. We have so many plans and we are starting with bonuses,” he tweeted.
Shaq unveiled the endorsements in February 2022
He first supported the company at the beginning of 2022, in February, at the Super Bowl festival, Shaq’s Fun House. The show was extremely successful and brought in a lot of eyeballs, which probably worked well for FTX.
Shaq was quick to cut ties with FTX and in an interview with the NBA. “A lot of people think I’m involved (in FTX), but I was just a paid spokesperson for a commercial,” he said.
But now Shaq is named in a class action lawsuit against FTX. Retail investor Edwin Garrison sued FTX after Bankman-Fried’s bankruptcy and names Shaq in the suit.
Shaq used the power of persuasion
The lawsuit alleges that Shaq used his “persuasion” to encourage people to get on board, but it’s a wonder he knew what he was getting people to do. The complainer has a hard time getting a hold of Shaq. The former Laker is said to be ducking and avoiding the serving process accordingly The Jasmine brand.
Garrison’s attorney spoke to the New York Post and said, “It is truly amazing what measures you have taken to avoid serving our complaint.” He continued: “The irony is that the facts against him are probably the worst of any of the FTX brand ambassadors.”
Garrison’s attorney also maintains that Shaq had the biggest allegations against him in the lawsuit and should be held accountable for them.
As mentioned above, Shaq isn’t the only celebrity on board to support FTX Tom Brady, with Giselle Bündchen and Larry David being the other celebs, and basketball player Steph Curry also helping out.
Garrison’s lawyer also made it clear that these other famous people are included in the lawsuit and that Shaq is not being singled out, he is just an important factor, much more so than the other celebrities.