Shaquille O’Neal, the legendary NBA player and popular sports commentator, has agreed to an $11 million settlement to resolve a class-action lawsuit involving Astrals non-fungible tokens (NFTs).
This resolution marks the end of a legal dispute in which O’Neal was accused of promoting the NFT project to investors who later faced losses. Additionally, O’Neal has resolved claims related to a separate lawsuit involving FTX, though both settlements await final court approval.
The Astrals NFT controversy began on May 23, 2023, when O’Neal was served with legal papers during an NBA game at the Kaseya Center in Miami—a venue previously named the FTX Arena. This class-action suit accused the basketball star of actively endorsing the Astrals NFT collection, which included 10,000 unique digital items created by artist Damien Guimoneau.
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By mid-August, a federal judge in Miami determined that the plaintiffs had shown O’Neal’s role as a seller of the NFTs. The plaintiffs alleged that O’Neal’s celebrity status played a role in influencing their decision to invest, as his endorsements were viewed as a stamp of credibility for the Astrals project. They further stated:
O’Neal knew or should have known of potential concerns about regulatory issues concerning the sale of unregistered crypto securities, but nevertheless extensively promoted the Astrals Project to his large following on a multitude of social media platforms.
Despite O’Neal’s assertions that he had not attempted to distance himself from the NFTs, investors argued that his involvement had diminished over time. As the value of the digital assets plummeted, those who suffered financial losses filed a lawsuit in September 2023.
In other news, BIT Mining has been fined $10 million following a corruption scandal involving bribes and Bitcoin. What were the details of this case? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
