Shaquille OāNeal has agreed to pay $11 million to settle a class action lawsuit brought by holders of the Astrals NFT collection.
The settlement, submitted as an unopposed proposal on Monday in a Florida district court, is now pending approval by Judge Federico Moreno. If granted, it will resolve allegations that he promoted unregistered securities.
The Astrals NFT project featured 10,000 digital collectibles designed by artist Damien Guimoneau. These NFTs offered users a virtual platform to socialize and interact, including opportunities to engage with basketball legend Shaquille OāNeal. The collection also introduced an associated cryptocurrency called Galaxy.
Court documents show that OāNeal, the projectās lead celebrity promoter, leveraged his fame to attract investment into the Astrals NFTs and Galaxy token. To promote the project, he used various tactics, including performing as āDJ Dieselā at events where Astrals imagery was displayed.
The Hall of Fame athlete is famously known for sharing the popular Wolf of Wall Street āIām not f***ing leavingā meme on Astralsā Discord channel, urging investors to hold onto their tokens. This occurred even as the broader NFT and cryptocurrency markets experienced significant declines, fueled by events like the FTX collapse.
These actions led investors to file a class action lawsuit against OāNeal in a Florida district court. However, the athlete sought the dismissal of the claims.
According to the original complaint, the 52-year-old and his son launched the Astrals NFT collection in March 2022. Investors alleged that OāNealās promotion of these NFTs and the Galaxy cryptocurrency was instrumental in their decision to invest.
Legal proceedings began in May 2023, with plaintiffs alleging that OāNeal knew the NFTs were unregistered securities but promoted them regardless to further his cryptocurrency ventures. They also claimed that the NBA legend abandoned the project after FTXās collapse, leading to a significant drop in the collectionās value.
Despite his efforts to dismiss the lawsuit, the court allowed it to proceed. In August 2024, Judge Moreno ruled that the plaintiffs had properly alleged the NFTs functioned as securities and that OāNeal acted as their seller.
After over a year of litigation, lawyers for both parties settled in November 2024. The proposed $11 million settlement would allow affected investors to recover their losses and cover legal expenses.
If approved, the proposal will end this case. However, OāNeal remains involved in other cryptocurrency-related legal issues, including litigation connected to the FTX exchange.
The post Shaquille OāNeal Agrees to $11M Settlement Over NFT Lawsuit appeared first on CryptoPotato.
The settlement, submitted as an unopposed proposal on Monday in a Florida district court, is now pending approval by Judge Federico Moreno. If granted, it will resolve allegations that he promoted unregistered securities.
The Lawsuit
The Astrals NFT project featured 10,000 digital collectibles designed by artist Damien Guimoneau. These NFTs offered users a virtual platform to socialize and interact, including opportunities to engage with basketball legend Shaquille OāNeal. The collection also introduced an associated cryptocurrency called Galaxy.
Court documents show that OāNeal, the projectās lead celebrity promoter, leveraged his fame to attract investment into the Astrals NFTs and Galaxy token. To promote the project, he used various tactics, including performing as āDJ Dieselā at events where Astrals imagery was displayed.
The Hall of Fame athlete is famously known for sharing the popular Wolf of Wall Street āIām not f***ing leavingā meme on Astralsā Discord channel, urging investors to hold onto their tokens. This occurred even as the broader NFT and cryptocurrency markets experienced significant declines, fueled by events like the FTX collapse.
These actions led investors to file a class action lawsuit against OāNeal in a Florida district court. However, the athlete sought the dismissal of the claims.
NBA Star Agrees to $11 Million Settlement
According to the original complaint, the 52-year-old and his son launched the Astrals NFT collection in March 2022. Investors alleged that OāNealās promotion of these NFTs and the Galaxy cryptocurrency was instrumental in their decision to invest.
Legal proceedings began in May 2023, with plaintiffs alleging that OāNeal knew the NFTs were unregistered securities but promoted them regardless to further his cryptocurrency ventures. They also claimed that the NBA legend abandoned the project after FTXās collapse, leading to a significant drop in the collectionās value.
Despite his efforts to dismiss the lawsuit, the court allowed it to proceed. In August 2024, Judge Moreno ruled that the plaintiffs had properly alleged the NFTs functioned as securities and that OāNeal acted as their seller.
After over a year of litigation, lawyers for both parties settled in November 2024. The proposed $11 million settlement would allow affected investors to recover their losses and cover legal expenses.
If approved, the proposal will end this case. However, OāNeal remains involved in other cryptocurrency-related legal issues, including litigation connected to the FTX exchange.
The post Shaquille OāNeal Agrees to $11M Settlement Over NFT Lawsuit appeared first on CryptoPotato.
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