The fallout from the collapse of the crypto exchange FTX continues, with major legal and financial moves now unfolding. FTX is pushing forward on multiple fronts, securing customer repayment options, settling celebrity lawsuits, and pursuing a billion-dollar legal fight with rival exchange Binance.
Shaquille O’Neal has reached an agreement to pay 1.8 million related to his previous endorsement of FTX. The lawsuit, filed in a Florida federal court, alleged that the NBA legend had defrauded investors through marketing and sponsorships, such as the FTX-sponsored event Shaq’s Fun House. It is one more high-profile crypto-related settlement O’Neal has reached, having earlier resolved an $11 million case concerning NFT sales.
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In other, albeit important news, FTX has integrated Payoneer as one of its payout partners, alongside Kraken and BitGo. International customer repayments will be processed through Payoneer starting after May 30, 2025. Customers choosing the service will have to accept being paid out in their local currencies instead of US dollars.
To be eligible for repayment, customers must pass identity verification, submit tax documents, and make an account via the official FTX Customer Portal. Only claimants who are registered on the official registry following a 21-day notice will be able to participate in the payout process.
Binance Pushes Back Against Billion-Dollar FTX Lawsuit
At the center of the most high-stakes dispute, Binance has filed a motion to dismiss a $1.76 billion lawsuit from the FTX estate. The case, filed in Delaware Bankruptcy Court, alleges Binance received large sums in crypto assets during a 2021 buyback deal funded with customer deposits. Binance’s legal team argues that the claims are legally flawed and lack evidence of insolvency at the time of the transaction.
FTX argues that the transaction was inappropriate and is trying to recover the money as part of its bankruptcy restoration process. Binance retaliates that FTX functioned normally more than a year after the transaction and that its downfall was due to mismanagement within the company rather than any external transactions.
As legal pressure was piled on all sides, FTX seems to be looking into reclaiming assets and prosecuting others, all aimed at resolving one of the most complicated collapses in crypto history.
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