<img src="https://crypto.news/app/uploads/2024/07/crypto-news-Plaintiffs-amend-complaint-in-Tether-lawsuit-option04.webp” />
NBA legend Shaquille O'Neal agreed to pay $11 million in a settlement with the Astrals nft collection to settle a lawsuit filed by the holders.
Hall of Famer O'Neal reached a settlement after allegations that he promoted unregistered securities linked to the Astrals non-fungible token project on Solana (SOL). As the collection's lead celebrity, O'Neal used his fame to attract investment in Astrals nfts, according to court documents.
The lawsuit highlights the influx of pop culture figures into web3 spaces during the nft boom in 2019. However, with the market crashing in 2022 and 2023, many investors were left with devalued tokens and vented their frustration on the servers. from Discord.
O'Neal shared the famous “I'm not leaving” Wolf of Wall Street meme on Astrals' Discord, encouraging holders not to sell their tokens, even as bankruptcies like FTX triggered broader declines in virtual currencies and markets. nfts. . Astrals nft investors eventually filed a class-action lawsuit against O'Neal in a Florida district court. Despite their attempts to evade the subpoenas and dismiss the case, the court proceeded with the claims.
Miami District Judge Federico Moreno ruled that Astrals nfts functioned as securities under the law. The ruling also referenced Galaxy, a decentralized autonomous organization token that O'Neal had previously promoted.
The $11 million agreement awaits Judge Moreno's approval to become binding. If approved, the funds will allow investors to recover losses and cover legal expenses.
Elsewhere, O'Neil is also part of consolidated litigation involving embattled crypto exchange FTX. A list of celebrities, including O'Neil and Tom Brady, starred in Super Bowl ads and other FTX promotional offerings.
