NBA Hall of Famer Shaquille O’Neal has given his nod to an $11 million settlement over the failed Astrals NFT project.
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O’Neal’s Astral NFTs creators were named as respondents in the class-action lawsuit that was filed on May 23, 2020. Plaintiffs claimed the non-fungible coins were tied to O’Neal and that many investors purchased the product as a result of O’Neal being a basketball player.
When O’Neal attempted to distance himself from the NFT project, its market value plummeted, leaving many investors with losses.
The settlement fund will refund investors who purchased these unregistered security, including GLXY (the governance token) and Solana based non-registered financial instruments.
Shaquille O’Neal has agreed to an $11 million settlement, following a lawsuit brought by investors in Astrals, a failed solana-based NFT project https://t.co/27tkiRDgzd
— Sherwood News (@sherwood_news) November 19, 2024
The O’Neal/Astral NFT Drama Will Be End With A Settlement
Daniel Harper, the plaintiff, filed the class action on May 23rd, in the Southern District of Florida’s Miami Division. O’Neal received the lawsuit notice on May 23, during a basketball match at the Kaseya Centre in Miami.
The plaintiffs claim that O’Neal defrauded investors by selling unregistered securities via the Solana NFTs and GLXY Governance Tokens.
Chart: TradingView Total crypto market capitalization currently stands at $3.06 Trillion. Chart: TradingView
A federal judge in Florida initially stated that the NBA star might be labeled as a security under existing securities laws. The judge’s initial assessment is based on his observation of the financial interest the player has in the project as well as the active marketing he does on social media.
On August 16th a Miami federal judge acknowledged O’Neal’s part in the failed development.
Astral Team Admits Losses
Astrals’ team acknowledged in October that the project was struggling financially, and it may be considering bankruptcy. The team explained that the GLXY token is no longer viable and will not be supported by Astrals.
O’Neal avoids a long and complicated legal process by agreeing to the $11-million settlement. O’Neal filed an initial motion to dismiss the class action, arguing digital assets (including NFTs) are designed for players and not investors.
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Celebs continue to face legal trouble over unregistered digital assets
O’Neal’s not the only celebrity who has been charged with promoting digital currencies and cryptocurrencies. Kim Kardashian was fined $1.3 Million by the Securities and Exchange Commission.
Also, Seinfeld’s co-creator Larry David as well as footballer Tom Brady have been implicated in the failure of FTX.
According to analysts the NFT industry is growing. Sales of NFTs rose to $356 Million in October 2024. That’s an 18% rise from the previous months. The number also increased, reaching 7.2 million transactions.
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