Shaq went into hiding to avoid being served in the FTX class action lawsuit
Shaquille O’Neal is reportedly hiding in his home to avoid being served in a class-action lawsuit against the former basketball star and other celebrity backers of FTX, a Texas-based multibillion-dollar crypto exchange that went bankrupt last year, according to emails obtained by Forbes.
The class action was filed in Florida in November by Oklahoma resident and FTX retail investor Edwin Garrison, and names O’Neal, Tom Brady, Stephen Curry, Larry David and Giselle Bündchen, Kevin O’Leary among the defendants in the suit. FTX founder Sam Bankman-Fried, who was extradited from the Bahamas in December to face a series of separate federal fraud charges, is also named in the suit, which argues that celebrities should be held accountable for being used as props to score billions in investments . The lawsuit also alleges that the celebrities violated SEC approval laws by failing to disclose the “nature, scope and amount” of the compensation they received from the crypto exchange.
Garrison’s attorneys David Boies and Adam Moskowitz sent an email to the defendant on March 7, which was with Forbes, explicitly naming O’Neal as the only defendant in the case who is “actively evading service,” by refusing to answer “the door his” ” when process servers went to his home. It’s not immediately clear which residence service workers are trying to contact O’Neal, as the famed athlete and entrepreneur has a number of residences, including homes in Texas, California, Florida and Atlanta.
Moskowitz described O’Neal’s evasive attempts to Forbes as “stunning,” noting that his involvement in the crypto exchange is “probably the worst against any of the FTX brand ambassadors.” The email says the other parties have been served, noting that “many … have been cooperative,” while “others have been more difficult.” Forbes reports that an email from attorney David E. Fink, who represents Naomi Osaka, who says the tennis star was unaware of efforts to profit her over a reported agreement to wear the FTX logo during tournaments.
Shaq, FTX Brand Ambassador
Shaquille O’Neal aka DJ Diesel performs on stage during Shaq’s Fun House presented by FTX at the Shrine Auditorium and Expo Hall on February 11, 2022 in Los Angeles, California.
Leon Bennett/Getty ImagesO’Neal was vocal in his endorsement of FTX, which had an estimated value of $32 billion at its peak, and held public events in support of the crypto exchange, including a massive carnival in February 2022 titled “Shaq’s Fun House Los Angeles Presented by FTX ,” which included performances by Lil Wayne and Diplo. He debuted in June 2022 as an official FTX brand ambassador, and his campaigns included a commercial for the exchange.
Moskowitz told Forbes that Shaq “admitted that his friend Steph Curry called him, told him he could make millions of dollars, if he just served as an FTX Brand Ambassador and lied in a TV commercial, that he was ‘all in’ with FTX, when he admitted it personally, he wouldn’t go near cryptocurrency.”
O’Neal spoke publicly to CNBC back in September 2021 about his hesitation to invest in cryptocurrencies due to his lack of knowledge on the subject, noting that the overnight success stories of crypto companies seemed “too good to be true.” He spoke to CNBC again in December 2022 after the investigation into FTX began, saying he was “just a spokesperson” for the commercial where he claimed he was “all in.”
The FTX crypto scandal and subsequent investigations continue to unfold, as Caroline Ellison, Gary Wang and Nishad Singh – Bankman-Fried’s close colleagues at FTX and Alameda Research – have pleaded guilty and are cooperating with the probes. FTX is accused of using client funds to prop up Alameda Research, and Wall Street reported on March 2 that $8.9 billion in unaccounted for client funds.
In addition to the class action and other federal investigations, the Texas State Securities Board confirmed in November to the Texas Tribune that the company and its celebrity backers, including O’Neal, were under investigation for violating state securities laws.
