Shaquille O’Neal Agrees to $11 Million Settlement in NFT Lawsuit
Shaquille “Shaq” O’Neal, renowned for his basketball defense, has settled a lawsuit for $11 million in a federal district court in Florida to conclude ongoing legal issues.
The Case Against O’Neal and Astrals
O’Neal was accused of promoting unregistered securities through non-fungible tokens (NFTs) and cryptocurrency associated with his company, Astrals. A lawsuit filed in May 2023 alleged that O’Neal leveraged his celebrity status to promote Astrals, which consists of 10,000 “metaverse-ready” 3D avatars, and related Galaxy tokens.
Using his DJ alias “DJ Diesel,” O’Neal reportedly showcased the Astrals characters at various high-profile events. Court documents indicate the plaintiffs claimed that O’Neal’s marketing of these digital assets violated US laws regarding unregistered securities.
Despite multiple attempts by O’Neal's legal team to dismiss the case, a federal judge allowed the plaintiffs to proceed in August. Both parties reached a settlement agreement in November, pending court approval, which is expected to cover legal fees and compensate buyers of Astrals NFTs and Galaxy tokens.
Astral acknowledged financial difficulties due to unexpected legal costs and the extended court battle in a private Discord message.
Celebrities and Crypto: A Growing Trend
O’Neal joins a list of celebrities facing legal scrutiny for crypto promotions. Kim Kardashian recently paid $1.3 million to settle SEC charges over her promotion of EthereumMax. Other figures like Tom Brady and Larry David are also involved in lawsuits related to the defunct crypto exchange FTX.