Shaquille O’Neal Settles Astrals NFT Lawsuit for $11 Million

NBA great and Hall of Famer Shaquille O’Neal has reached a $11 million settlement with Astrals NFT holders. He was accused of advertising unregistered securities connected to the Astrals NFT project on the Solana blockchain, and the settlement attempts to settle that complaint.

According to reports, O’Neal, the main star behind the Astrals collection, used his notoriety to entice investors to the NFTs. According to the lawsuit, he encouraged token holders to keep their tokens by disseminating memes such as the famous “I’m not f***ing leaving” scene from The Wolf of Wall Street in the Astrals Discord. Even while the NFT market saw a severe decline as a result of occurrences such as FTX’s collapse, these actions took place.

Filed in a Florida district court, the lawsuit alleged that O’Neal and other public figures contributed to financial losses for investors. Miami District Judge Federico Moreno ruled that Astrals NFTs qualified as securities, a designation that intensified the case against O’Neal. The ruling also noted his involvement in promoting Galaxy, a DAO token, further complicating his legal standing.

Settlement and Broader Implications

The $11 million settlement, still pending Judge Moreno’s final approval, will be used to compensate investors for their losses and cover legal costs. This development highlights the growing legal and regulatory challenges faced by celebrities who endorsed blockchain projects during the NFT boom.

Beyond the Astrals case, O’Neal remains entangled in broader litigation involving FTX, the now-defunct crypto exchange. Alongside high-profile figures like Tom Brady, he participated in Super Bowl advertisements and other promotional campaigns for FTX, further drawing attention to the intersection of celebrity endorsements and cryptocurrency.

The settlement underscores the risks of celebrity involvement in emerging technologies, particularly when financial losses follow market declines. Investors and regulators alike are scrutinizing such endorsements more closely.