Crypto Influencer Ordered to Pay $2.8 Million to Kevin O’Leary

The decision, delivered by Judge Beth Bloom of the U.S. District Court for the Southern District of Florida, came after Armstrong failed to mount a meaningful legal defense. The court entered a default judgment totaling $2,828,000.

How The $2.8 Million Was Calculated

The damages were structured to reflect both punishment and personal harm:

• $2,000,000 in punitive damages
• $750,000 for emotional distress
• $78,000 for reputational damage

The punitive portion makes up the bulk of the award, signaling the court’s view that the conduct warranted a strong deterrent message.

The Accusations At The Center Of The Case

The lawsuit, filed in March 2025, focused on posts Armstrong made on platforms including X and LinkedIn.

Armstrong publicly accused O’Leary and his wife, Linda, of being “murderers” who allegedly paid to conceal responsibility for a 2019 boating accident in Ontario that resulted in two fatalities. In reality, O’Leary was a passenger during the incident and was never charged. His wife was later acquitted of all charges in 2021.

Beyond the murder allegations, Armstrong also published O’Leary’s private cellphone number and urged followers to contact and harass him. He referred to the investor as a “real-life murderer,” prompting a temporary suspension of his X account.

Attempt To Overturn The Judgment Rejected

In early 2026, Armstrong sought to vacate the default ruling. He cited mental health challenges, including a bipolar diagnosis, as well as a period of incarceration, arguing these factors prevented him from responding to the lawsuit.

Judge Bloom rejected the motion, noting that Armstrong had been properly served and had waited close to a year before attempting to challenge the judgment. Court records also referenced statements Armstrong reportedly made to a psychiatrist indicating he believed he was “dead and in a waiting room for Hell.”

Will O’Leary Actually Collect The Money?

While the ruling is significant on paper, recovering the full amount may prove difficult.

Reports from late 2025 suggested Armstrong was close to insolvency, with many of his crypto wallets largely depleted. A related entity, Armstrong Bridging International Ltd, entered voluntary liquidation in September 2025 after acknowledging it could not meet its financial obligations.

Armstrong’s legal troubles extend beyond this defamation case. In 2025, he faced arrests in Florida tied to a fugitive warrant involving alleged threats to a Georgia judge, as well as separate charges related to harassing phone calls. He also reached a $340,000 settlement with NBA player Jimmy Butler over claims connected to the promotion of unregistered securities tied to Binance. Additionally, his former company, Hit Network, was subpoenaed by the CFTC in connection with a broader fraud investigation involving multiple tokens.

O’Leary Still Navigating FTX Fallout

O’Leary himself remains entangled in litigation stemming from the collapse of FTX.

In May 2025, a U.S. judge dismissed most claims against O’Leary and other celebrity endorsers, including Tom Brady and Stephen Curry, finding insufficient evidence that they had knowledge of alleged fraud at the exchange. However, broader multidistrict proceedings related to the FTX collapse remain active in the Southern District of Florida.

O’Leary has repeatedly stated that he lost the entire $15.7 million he received from FTX, describing the deal as a misjudgment shaped by what he called “groupthink.”

The Florida ruling marks a rare courtroom win for the investor during a turbulent period in the crypto industry – but whether the $2.8 million award translates into actual recovery remains an open question.

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