The legal team representing victims of the FTX exchange’s sudden downtime last month is reportedly encountering difficulties in serving retired NBA star and FTX ambassador Shaquille O’Neal with legal papers. The incident that warranted it occurred on March 25, when the FTX exchange experienced technical difficulties, causing a sudden and unexpected downtime for several hours. As a result, traders and investors were unable to access their accounts or execute trades during that period, leading to potential financial losses.
Lawyers representing FTX clients unable to reach Shaq
Following the incident, several traders filed a class-action lawsuit against FTX for negligence, seeking compensation for their losses. The lawsuit also named Shaquille O’Neal as a defendant, as he serves as a brand ambassador for FTX.
However, the legal team is reportedly having trouble serving Shaq with the legal papers, as he has been difficult to reach. The lawyers have tried to serve him with the papers at his home and office but to no avail. They have also attempted to reach him through his representatives and legal team, but have received no response.
This is not the first time that Shaq has faced legal troubles related to his involvement with FTX. In February, the Securities and Exchange Commission (SEC) charged FTX with violating federal securities laws by offering and selling unregistered cryptocurrency-based derivatives products. Shaq was also named in the SEC’s lawsuit, as he had promoted FTX’s products on his social media channels without disclosing that he was being paid to do so.
Reports claim O’Neale and other celebrities received payments to endorse FTX
The FTX exchange, based in Hong Kong and has offices in several other countries, has become one of the most popular cryptocurrency exchanges in the world in recent years. The exchange offers a wide range of trading products and has attracted a large following among cryptocurrency traders and investors.
However, the exchange has also faced several challenges and controversies in recent months. In addition to the March downtime and the SEC lawsuit, the exchange has also been accused of engaging in market manipulation and insider trading.
These allegations have not been proven, but have contributed to a negative perception of the exchange in some quarters. The incident with Shaq also highlights the potential legal risks associated with celebrity endorsements in the cryptocurrency industry.
While celebrity endorsements can be an effective way to promote a product or service, they can also create legal liabilities if the celebrity does not properly disclose their relationship with the company. In the case of Shaq and FTX, it appears that the legal issues are not over yet, and it remains to be seen how the legal proceedings will unfold.
Reports also claimed that other celebrities that were paid to endorse the company will also be served in the coming days. Meanwhile, the lawyers are still hoping Shaq is present to accept the court papers despite previous attempts to reach him at his home, office, and through his representatives and legal team.