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NBA legend Shaquille O'Neal signs a deal for $11 million in the NFT Astral case
Former NBA star Shaquille O'Neal has agreed to a settlement of $11 million in a lawsuit related to the promotion of the NFT project Astral and Galaxy coins. This significant financial agreement is aimed at compensating investors for losses incurred as a result of his advertising activities.
Agreement and Court Process Details
According to the received information, the settlement amounting to $11 million will cover the plaintiffs' legal costs and provide monetary payments to the buyers of NFTs and coins from the project. Currently, the agreement is awaiting final approval from the judge.
A class action lawsuit filed in the federal court of Florida accused O'Neal of promoting unregistered Astral tokens, which allegedly violated securities laws. The lawsuit claimed that the athlete repeatedly advertised Astral NFTs through his social media accounts, leading to a significant drop in the value of the associated tokens and NFTs.
The History of O'Neal's Relationship with the Cryptocurrency Sector
O'Neal started his activity in the world of NFT back in 2021, releasing his own collection of non-fungible tokens. However, in 2024, he faced legal issues when the court ruled that NFT buyers had sufficiently argued that O'Neal was involved in the sale of unregistered securities by promoting NFTs and associated crypto tokens on his social media.
It is interesting to note that in the case of the Astrals Project, the court relied on the Howey test established by the Supreme Court, which has been used by the SEC for decades to determine whether a digital coin is a security. The court pointed out that the defendants controlled both the website and the marketplace where the Astrals products were sold, as well as the ownership rights to all the intellectual property of the Astrals NFTs.
This legal dispute highlights the growing legal risks for celebrities promoting cryptocurrency projects and may serve as a warning to investors about the need for thorough research of projects before investing.