Shaquille O’Neal Settles Lawsuit with Astrals NFT for $11 Million

According to a Monday court filing, O’Neal and associated Astrals entities will provide monetary relief to compensate investors who purchased unregistered securities through the project. The settlement also allocates funds to cover legal fees. Pending court approval, it would bring closure to O’Neal’s NFT-related legal issues, including allegations that he abandoned the project in 2022.

The Astrals Controversy

The lawsuit, filed on behalf of Astrals NFT investors, claimed that the project’s 10,000 Solana-based avatars and governance token, GLXY, were unregistered securities. Plaintiffs argued that O’Neal actively promoted the project through social media and during DJ Diesel performances, leveraging his celebrity status to boost interest.

In August, a Florida federal judge partially upheld the case, determining that O’Neal could be considered a “seller” under securities laws without needing personalized promotional statements, provided he had a financial motive tied to his endorsements.

The Fallout

The settlement proposal comes amid financial strain for the Astrals project. In October, the Astrals team informed community members on Discord that ongoing legal challenges had made bankruptcy likely, forcing the wind-down of support for the GLXY token.

Lead attorney Adam Moskowitz called the settlement an “excellent recovery,” highlighting the dire financial state of Astrals and the broader impact of crypto-related bankruptcies.

Moskowitz, known for his work in celebrity-centric crypto lawsuits, has also pursued cases against high-profile FTX promoters, including Tom Brady and Larry David.

O’Neal’s Role and Challenges

While O’Neal faced scrutiny for his involvement in Astrals, he also encountered legal hurdles stemming from his ties to FTX. O’Neal’s initial resistance to being served in both the Astrals and FTX cases became a notable subplot, with reports of documents allegedly thrown at his car and served during an NBA broadcast at the former FTX Arena in Miami.

Despite his initial denial of wrongdoing, O’Neal’s settlement reflects a broader accountability trend for celebrity endorsements in the crypto space.

What’s Next for Astrals?

Astrals’ social media presence has significantly diminished amid the legal turmoil. Its last post on X (formerly Twitter) in December 2023 read, “Gm Solana. We are still alive.”

As the settlement awaits court approval, it remains to be seen whether the Astrals project can recover or if this marks the end of its operations.