NBA Hall of Famer Shaquille O'Neal approved an $11 million deal for <a target="_blank" href="https://www.fxleaders.com/news/2024/11/20/shaquille-oneal-agrees-to-11-million-compensation-in-solana-nft-lawsuit/” target=”_blank” rel=”noopener nofollow”>Failed Astrals nft project.
O'Neal and his Astral nft co-creators were defendants in a class-action lawsuit filed on May 23, 2024. The plaintiffs argued that the non-fungible tokens were linked to O'Neal's popularity and that many investors purchased the product because to the Basketball Players Association with the project.
However, when O'Neal attempted to disassociate himself from the project, the market value of the nft fell, leaving many investors with losses.
He settlement The fund will refund investors who invested in these unregistered securities, including its governance token, GLXY, and Solana-based nfts.
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Shaquille O'Neal agreed to an $11 million settlement, following a lawsuit filed by investors in Astrals, a failed nft project based on Solana. https://t.co/27tkiRDgzd
– Sherwood News (@sherwood_news) <a target="_blank" href="https://twitter.com/sherwood_news/status/1858959627376816176?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>November 19, 2024
Deal Will Close O'Neal-Astral nft Drama
The class action lawsuit over O'Neal's association with the Astral project was filed on May 23 in the Southern District of Florida, Miami Division, with Daniel Harper as lead plaintiff. O'Neal was quickly served with the lawsuit on May 23, during a basketball game at the Kaseya Center in Miami.
According to the plaintiffs, <a target="_blank" href="https://www.axios.com/2024/11/19/haq-11-million-settlement-nft-suit-astrals” target=”_blank” rel=”noopener nofollow”>O'Neal was guilty of defrauding investors offering unregistered securities through Solana-based nfts and GLXY governance tokens.
A federal judge in Florida initially commented that the NBA star could be labeled under existing securities laws. The judge's initial observation and evaluation is based on the player's financial interest in the project and their active marketing of the project on social media.
On August 16, a federal court judge in Miami formally acknowledged O'Neal's role in the failed project.
Team Astral admits losses
In October, the Astrals team admitted that <a target="_blank" href="https://www.dlnews.com/articles/regulation/shaquille-oneal-and-astral-team-to-settle-nfts-lawsuit-for-11m/” target=”_blank” rel=”noopener nofollow”>the project is having financial difficulties and is considering filing for bankruptcy. The team added that it will no longer support the GLXY governance token, explaining that it is no longer feasible.
By accepting the settlement amount of $11 million, O'Neal can avoid a complicated and lengthy legal process. O'Neal initially filed a motion to dismiss the class action lawsuit, arguing that digital assets (including nfts) were designed for gamers and not investors.
More celebrities get into trouble over unregistered digital assets
O'Neal is not the only celebrity in charge of promoting digital assets and cryptocurrencies. Kim Kardashian was also fined $1.3 million by the Securities and Exchange Commission (SEC) for her support of EthereumMax.
Additionally, Seinfeld co-creator Larry David and football player Tom Brady were implicated in the bankruptcy of the FTX crypto exchange.
According to analysts, the nft market is currently growing. nft sales increased to $356 million in October 2024, reflecting an 18% improvement from the previous month. The number of transactions also increased to 7.2 million.
Featured image by AfroTech, TradingView chart
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