NBA Legend Shaquille O’Neal Settles $11 Million Lawsuit with Astrals NFT Collection
Settlement Reached in Allegations of Unregistered Securities Promotion
Former NBA star Shaquille O’Neal has reached an $11 million settlement with the Astrals NFT collection to resolve a lawsuit brought by token holders. The settlement comes after accusations that O’Neal promoted unregistered securities linked to the Astrals NFT project on the Solana blockchain.
Legal Troubles in the NFT Space
The lawsuit brought attention to the intersection of celebrities and web3 spaces during the NFT boom of recent years. O’Neal, as a prominent figure associated with the Astrals project, was accused of using his celebrity status to encourage investments in Astrals NFTs.
Market Downturn and Investor Frustration
As the NFT market faced a downturn in 2022 and 2023, many investors found themselves holding devalued tokens and expressed their frustrations in online forums like Discord. O’Neal’s public statements, including sharing a popular meme on the Astrals Discord, added to the controversy surrounding the project.
Court Ruling and Settlement Approval
A Miami District Judge ruled that Astrals NFTs could be classified as securities, leading to the $11 million settlement awaiting final approval. If approved, the funds will be used to compensate investors for their losses and legal expenses related to the lawsuit.
FTX Exchange Litigation
In addition to the Astrals NFT case, O’Neal is also involved in a consolidated litigation related to the FTX crypto exchange. The lawsuit involves a group of celebrities, including O’Neal and Tom Brady, who participated in promotional activities for the exchange.
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