NBA superstar Shaquille O'Neal settles for $11 million, Astrals NFT and FTX lawsuit is truly hard to bear

NBA renowned legendary basketball star "Superman" Shaquille O’Neal is involved in a class-action lawsuit related to the Astrals NFT project, accused of promoting unregistered securities. He has agreed to pay $11 million to settle the claims, pending approval by a U.S. court. Source

Offending "Users" and Attempting to Flee, NBA Turns into Legal Battlefield

On May 23, 2023, during the NBA Eastern Conference Finals, O'Neal, while serving as a commentator at the Kaseya Center in front of the FTX Arena in Miami, was served with a lawsuit. According to the lawyer, O'Neal had attempted to evade the court summons, but was eventually "cornered" at the Kaseya Center. Individuals involved in serving the lawsuit even purchased tickets to enter the venue to ensure the successful delivery of the legal documents to O'Neal. This incident involves two class-action lawsuits:

1. FTX Exchange Case: O'Neal and other celebrities such as renowned basketball star Stephen Curry, actor Tom Brady, and Larry David are accused of promoting the FTX exchange, leading to numerous investors suffering losses.
2. Astrals NFT Case: Allegations against O'Neal for founding and promoting the Astrals NFT project, involving the sale of unregistered securities.

In the FTX case, O'Neal had attempted to counterattack on the grounds of "invalid service of process," but this "arena service" was deemed compliant with regulations, allowing the case to proceed further.

Promoting NFTs with Celebrity Effect, Accused of Selling Unregistered Securities

This recent lawsuit stems from O'Neal's previous promotion of the Astrals NFT project based on the Solana chain, which included 10,000 NFTs and the "Galaxy" token with governance rights. When the NFT market was in a downturn last year, investors accused O'Neal of using his fame to attract investments and quickly withdrawing after the market crashed.

In August of this year, the Florida District Court ruled that these NFTs and tokens may meet the definition of securities, and O'Neal was identified as the "seller," subject to prosecution under Section 12 of the U.S. Securities Act.

O'Neal Attempted to Counterattack, Retreated After FTX Collapse

Facing this case, O'Neal has repeatedly tried to have the charges dismissed, but has been denied, and the case will continue to be litigated. According to documents, O'Neal was a spokesperson for the Astrals NFT project and had previously voiced support for Astrals on Discord, posting a "The Wolf of Wall Street" meme with the caption, "I ain't leaving!" However, the plaintiffs pointed out that O'Neal actually abandoned the Astrals NFT project after the collapse of FTX exchange.

The legal dispute between FTX exchange and O'Neal has also attracted media attention, even becoming a joke during a live basketball game broadcast. Before the start of the NBA Eastern Conference Finals, O'Neal jokingly said to Stephen Curry, "Thanks for getting me in trouble, stop trash-talking!" causing laughter in the audience.

Settlement Funds to Compensate Investors and Pay Legal Fees, Caution for Celebrity Endorsements

The $11 million settlement from O'Neal, if approved by the court in the future, will be used to compensate Astrals NFT investors and cover legal fees. According to OpenSea, there are over 2,300 users holding Astrals NFT series. This class-action lawsuit also serves as a warning bell for celebrity endorsements of cryptocurrency projects, as similar cases may receive more attention in the future.

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