Though the court has not yet approved the $11 million settlement, it is expected to cover legal fees and provide compensation to everyone who bought Astrals NFTs and Galaxy tokens.
Shaquille “Shaq” O’Neal may have gone down as one of the best defenders in the history of basketball, but he came up short in his defense in a federal district court in Florida. This follows after the NBA Hall of Famer reportedly agreed to settle a lawsuit for $11 million as he seeks to put an end to his court appearances.
The Case Against O’Neal and Astrals
O’Neal had allegedly promoted unregistered securities in the form of NFTs and cryptocurrency. Hence, the claims brought against him and his company, Astrals.
In May 2023, a group of plaintiffs filed a lawsuit accusing O’Neal of using his popularity to promote Astrals, a collection of 10,000 “metaverse-ready” 3D avatars. Not only that, the group also claimed that O’Neal did promote another associated cryptocurrency called Galaxy tokens with his celebrity status.
O’Neal reportedly promoted the project under his DJ alias “DJ Diesel”. He was said to have used various high-profile events and live performances as avenues to display the Astrals characters in not-so-subtle ways.
Court documents reveal that the plaintiffs argue that O’Neal and his company had marketed the digital assets in question as unregistered securities. This, they say, is in violation of US laws.
As the case went on, O’Neal and his legal team attempted to have the case dismissed on many occasions. However, in August, a federal judge cleared the plaintiffs to proceed with the litigation, and by November, both parties agreed to settle.
Though the court has not yet approved the $11 million settlement, it is expected to cover legal fees and provide compensation to everyone who bought Astrals NFTs and Galaxy tokens.
Meanwhile, Astral has officially admitted that the financial strain has become quite unbearable. This was disclosed in a private message on Discord, as the company cited unexpected legal expenses and a prolonged court battle.
Celebrities and Crypto: A Growing Trend
Notably, O’Neal is not the first celebrity to find himself in the crosshairs of the law after promoting crypto.
Kim Kardashian’s case of 2022 is still fresh in mind, where she ended up paying $1.3 million to settle charges with the US Securities and Exchange Commission (SEC). That is, for her role in promoting EthereumMax. NFL star Tom Brady and comedian Larry David are also currently facing lawsuits related to the now-bankrupt crypto exchange FTX.
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