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Shaquille ‘Shaq’ O’Neal, basketball legend and global icon has taken a notable step toward resolving legal troubles tied to his Astrals NFT project. In a new document filed in court, O’Neal’s has agreed to a staggering $11 million in lawsuit settlements.
This development marks a notable turn in the ongoing saga surrounding his foray into blockchain and NFTs.
An $11 Million Step Toward Resolution
Under the settlement terms, O’Neal and the Astrals project will pay $11 million. Pending court approval, this sum is designated for investor compensation and legal fees.
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This settlement will effectively conclude O’Neal’s legal troubles tied to Astrals NFTs if accepted. This includes accusations of actively promoting the tokens and later abandoning the project.
The Rise and Fall of Astrals NFTs
The Astrals NFT project, endorsed by Shaquille O’Neal, initially thrived in the industry with its celebrity-backed hype. It featured 10,000 Solana-based metaverse-ready avatars and a governance token called GLXY, tied to its decentralized autonomous organization (DAO).
However, by 2022, the project appeared to lose its momentum, with O’Neal distancing himself as lawsuits and financial difficulties mounted. Allegations included the sale of unregistered securities and claims that O’Neal’s promotion misled buyers.
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In October, Astrals communicated via Discord that ongoing legal challenges had imposed unsustainable financial strain, forcing the project to wind down support for the GLXY token.
A crucial aspect of the lawsuit was determining Shaq’s legal liability. In August, a federal judge ruled that O’Neal could plausibly be considered a “seller” under securities laws because his promotion of Astrals NFTs was financially motivated. This ruling played a significant role in advancing the case.
In response, O’Neal’s legal team argued that the NFTs were intended for gamers, not investors, but the claim fell flat after the project’s collapse.
The case extended to broader crypto controversies, linking O’Neal to FTX-related lawsuits. Other high-profile figures involved included Tom Brady and Larry David, who emphasized the responsibility of celebrity endorsements in crypto.
A Cautionary Tale of Celebrity Hype and Blockchain Risk
The Astrals settlement warns celebrities and investors about the risks of blockchain projects. While O’Neal’s fame initially boosted interest in Astrals, it also showed the dangers of relying on celebrity endorsements without a solid foundation.
As the crypto market evolves, O’Neal’s case may set an example for ensuring transparency and accountability in promoting digital assets. For Astrals investors, the settlement offers some relief but highlights the ongoing challenges in the NFT space, especially after the FTX collapse.
