FTX case
Adobe Stock / Александр Поташев

Basketball icon Shaquille O’Neal is now caught up in the growing backlash from the FTX class action lawsuit after he was served legal papers at his home in Atlanta on Sunday. O’Neal had successfully avoided being served for the past three months, but his game of hide-and-seek has finally come to a close.

The FTX lawsuit filed against the now-defunct crypto exchange and its celebrity promoters has sent shockwaves through the world of finance and entertainment.

At the height of its prominence, FTX enjoyed a meteoric rise, bolstered by the star power of promoters like O’Neal, who was affectionately dubbed “Shaqtoshi” by the company. However, FTX’s rapid ascent was followed by an equally dramatic collapse, with the platform filing for bankruptcy last year amid allegations of fraud.

Slam Dunked by the FTX Lawsuit

In the wake of FTX’s collapse, O’Neal has attempted to distance himself from the company, claiming that he was merely a paid spokesperson for a commercial.

For three months, O’Neal managed to elude the process servers tasked with delivering the FTX lawsuit papers, despite his regular appearances on television, podcasts, and even as a touring DJ under the nickname “DJ Diesel.”

In their pursuit of the basketball star, the lawyers became increasingly desperate, requesting a judge to permit service via social media and email. After their request was denied, they resorted to tweeting at O’Neal from outside the TNT studios in Atlanta, where he is a fixture on “The NBA on TNT.”

The effort to serve O’Neal with papers in the FTX lawsuit escalated when a process server allegedly received a text message that appeared to threaten his wife.

“Shaq lives in the Bahamas u stupid fuck give Beth Shaw my regards,” the text message said, according to court filings. It is not clear who sent the message.

With residences in Florida, Georgia, Nevada, California, and the Bahamas, O’Neal’s multiple homes complicated the process of locating him. The lawyers eventually focused on his Texas residence, where he is expanding his Big Chicken restaurant franchise.

The process servers’ perseverance finally paid off when they served O’Neal at his Atlanta home. The FTX lawsuit papers were handed over, and the exchange was captured on video, which lawyers insist be preserved as evidence for the upcoming court proceedings.

“We just served personally Shaquille O’Neal outside his house with a copy of our complaint at 4 pm,” said Adam Moskowitz, the lawyer who handles the FTX lawsuit, in an email. “We took Judge Moore’s instructions very seriously and are glad to finally end this silly sideshow.”

“His home video cameras recorded our service and we have made it very clear, he is not to destroy and/or erase any of these security tapes, because they must be preserved for our lawsuit,” Moskowitz added. “Mr. O’Neal will now be required to appear in federal court and explain to his millions of followers his ‘FTX: I Am All In’ false advertising campaign.”

FTX’s Celebrity All-Star Roster

The FTX lawsuit has entangled over a dozen other celebrities and sports teams who once proudly endorsed the cryptocurrency platform.

Talent agencies like Endeavor, which owns top Hollywood agent Ari Emanuel’s media company and its subsidiaries IMG and WME, have been linked to FTX through investments made by their executives. The agency’s roster boasted high-profile names like supermodel Gisele Bündchen and tennis sensation Naomi Osaka, who promoted FTX in attention-grabbing commercials.

FTX’s relationship with another talent agency, Octagon, was similarly entwined. Octagon’s founder, Philip de Picciotto, and at least five other executives personally purchased shares in the crypto exchange.

A spokesperson for Octagon, however, denied any agency investment in FTX, clarifying that any investments made by their executives and agents were in a personal capacity.

The FTX lawsuit also targets other high-profile celebrities like NBA superstar Steph Curry, football icon Tom Brady and “Seinfeld” creator Larry David. O’Neal, who Moskowitz said had “been hiding and driving away from our process servers for the past three months,” was the final figure to be served on Sunday.

As the FTX lawsuit develops, more connections between the worlds of entertainment, sports, and finance are expected to be revealed. The ongoing legal conflict serves as a stark warning of the potential dangers associated with celebrity endorsements, particularly in the unpredictable and intricate realm of cryptocurrencies.

In the following months, the FTX lawsuit will likely persist in making headlines as it moves through the judicial system, with Shaquille O’Neal and other celebrities possibly facing repercussions for their association with the defunct crypto exchange.

It is uncertain whether the lawsuit’s outcome will lead to substantial changes in how celebrities endorse and invest in crypto companies. Nonetheless, the FTX lawsuit acts as a warning for both the public and celebrities, shedding light on the potential hazards and obligations of such involvement.

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