Shaquille O’Neal, the iconic US basketball legend, has recently found himself in the midst of a legal battle surrounding his involvement in the Astrals non-fungible token (NFT) project. The project, based on the Solana blockchain, features 10,000 3D avatars designed to attract investment in a virtual world known as Astralverse, managed by a decentralized autonomous organization (DAO) using its own cryptocurrency, Galaxy.
In a recent court ruling in Miami, Judge Federico Moreno dismissed some of the claims in the class action lawsuit filed against O’Neal in May 2023. While the court acknowledged O’Neal’s role as a “seller” in the project, it determined that he was not a “control person.” However, the court did not dismiss the claim that the NFTs and Galaxy tokens could be considered securities.
Court records revealed that O’Neal actively promoted the Astrals project online, making promises about the project’s success. However, the plaintiffs argue that O’Neal later abandoned the project, leading to a decline in the NFTs’ value. The plaintiffs accused O’Neal of disregarding potential regulatory concerns and extensively promoting the project to his large social media following.
The court has given O’Neal and the Astrals team until September 12 to respond to the remaining allegations, leaving several legal questions unresolved. The final decision on the remaining claims against O’Neal is still pending.
In a separate development, YouTuber and crypto journalist Stephen Findeisen, known as Coffeezilla, is facing a defamation lawsuit filed by social media influencer Logan Paul over statements made about Paul’s failed NFT project, CryptoZoo.
The legal proceedings surrounding Shaquille O’Neal’s involvement in the Astrals NFT project continue to unfold, with the final outcome yet to be determined. Stay tuned for further updates on this evolving story.
