Shaq’s NFT Venture Concludes with $11 Million Settlement

Eleven million dollars. That’s the price Shaquille O’Neal paid to settle a class-action lawsuit alleging the sale of unregistered securities through his promotion of the Astrals NFT project—a stunning blow that underscores the regulatory Wild West of the cryptocurrency market and the perilous risks of celebrity endorsements.

The Astrals NFT Project Implodes

The lawsuit, filed in September 2023, centered on O’Neal’s promotion of Astrals, a collection of 10,000 metaverse-ready 3D avatars. Plaintiffs argued persuasively that O’Neal’s celebrity was the project’s main selling point, directly inducing investors to purchase Astrals NFTs and GLXY tokens based on his endorsement.

They successfully contended these digital assets functioned as unregistered securities, violating federal laws. The settlement, while not an admission of guilt, speaks volumes about the legal vulnerabilities involved.

Adding insult to injury, a now-infamous Discord post surfaced—a GIF from “The Wolf of Wall Street” where O’Neal defiantly declared, “I’m not f***ing leaving,” assuring investors of his unwavering support. This promise proved tragically ironic as the value of the Astrals NFTs plummeted shortly after.

The settlement, awaiting approval from U.S. District Senior Judge Federico Moreno of the Southern District of Florida, will create an $11 million fund to compensate defrauded investors. Adam Moskowitz of the Moskowitz Law Firm, lead attorney for the plaintiffs, said, “This shows a commitment to making things right for the victims,” highlighting O’Neal’s promotional roles for both Astrals and the now-bankrupt FTX exchange. O’Neal’s legal team declined to comment.

More Than Just an NFT Lawsuit

This isn’t O’Neal’s only brush with crypto-related legal issues. He’s also named in a separate class-action lawsuit against FTX, alongside other celebrities like Tom Brady, Steph Curry, and Larry David. Critics argue that these high-profile endorsements lured investors into believing in FTX’s stability before its dramatic collapse.

While the outcome of that lawsuit remains pending, the Astrals NFT settlement intensifies the scrutiny on O’Neal’s crypto dealings and the broader issue of celebrity endorsements in this volatile market. Judge K. Michael Moore of the Southern District of Florida is expected to rule soon on a settlement in the FTX matter.

The $11 Million NFT Settlement

The Astrals and FTX legal battles serve as a potent warning. For investors, it underscores the critical need for thorough due diligence before investing in any crypto project, especially those backed by celebrities. For celebrities, it highlights the significant personal and financial risks of endorsing crypto ventures without rigorous investigation into legitimacy and regulatory compliance.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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