- Shaquille O’Neal has secured a partial court victory in a lawsuit related to his involvement in the Astrals NFT project
- Some claims against O’Neal have been dismissed, but significant legal issues remain unresolved
- O’Neal has also been sued for his promotion of the now-defunct FTX platform
Basketball icon Shaquille O’Neal has achieved a partial victory in a Miami court concerning his role in the Astrals non-fungible token (NFT) project. The lawsuit, filed against him in May 2023 as part of a class action, saw some claims dismissed, although key issues remain unresolved. O’Neal is also one of a handful of celebrities who promoted FTX and have since been sued over their participation.
O’Neal Was “Seller”
The Astrals project, based on the Solana blockchain, features a collection of 10,000 3D avatars designed to promote investment in a virtual realm known as Astralverse. This virtual environment is governed by a decentralized autonomous organization (DAO), which operates using its own cryptocurrency, Galaxy.
Judge Federico Moreno, presiding over the case, determined that O’Neal had indeed acted as a “seller” within the project. However, the court did not find sufficient evidence to classify him as a “control person.” Importantly, the judge did not dismiss the argument that the NFTs and Galaxy tokens associated with the project could potentially be classified as securities under regulatory law.
Departure Led to Price Drop
Court documents reveal that O’Neal played a significant role in promoting the Astrals project through various online platforms. In one promotional video, he assured potential investors that the team would work diligently until the NFTs reached a value of 30 SOL. The plaintiffs, however, contend that O’Neal later withdrew his involvement, leading to a significant decline in the value of the NFTs.
The plaintiffs further argue that O’Neal was either aware or should have been aware of the potential regulatory issues surrounding the sale of unregistered crypto securities. Despite these concerns, they allege that he continued to aggressively market the Astrals project to his substantial social media following.
The court has given O’Neal and the Astrals team until September 12 to respond to the remaining claims, leaving several legal questions unresolved as the case moves forward.
In a related development, YouTuber and crypto journalist Stephen Findeisen, known as Coffeezilla, is facing a defamation lawsuit from social media influencer Logan Paul. The lawsuit centers around allegations that Coffeezilla spread false information about Paul’s failed NFT project, CryptoZoo.
