Shaquille O’Neal accepts $11 million settlement over NFT lawsuit

Shaquille O’Neal has agreed to pay $11 million to settle a class action lawsuit filed by holders of the Astrals NFT collection.

The settlement, filed Monday as an unopposed proposal in a Florida district court, now awaits the approval of Judge Federico Moreno. If granted, it will resolve allegations that he promoted unregistered securities.

The Court

The Astrals NFT project featured 10,000 digital collectibles designed by artist Damien Guimoneau. These NFTs provided users with a virtual platform to socialize and interact, including opportunities to engage with basketball legend Shaquille O’Neal. The collection also introduced an associated cryptocurrency called Galaxy.

Court documents show that O’Neal, the main celebrity promoter of the project, used his fame to attract investments in Astral NFTs and the Galaxy token. To promote the project, he used various tactics, such as performing as “DJ Diesel” at events where footage of Astrals was shown.

The Hall of Fame athlete is known for sharing the popular Wolf of Wall Street meme “I’m not going to shit” on Astrals’ Discord channel, urging investors to keep their chips. This happened even as the broader NFT and cryptocurrency markets experienced significant declines, driven by events such as the FTX collapse.

Those actions led the investors to file a class action lawsuit against O’Neal in a Florida district court. However, the athlete asked for the claims to be dismissed.

NBA star accepts $11 million settlement

According to the original complaint, the 52-year-old and his son launched the Astrals NFT collection in March 2022. The investors alleged that O’Neal’s promotion of these NFTs and the Galaxy cryptocurrency was instrumental in their decision to invest.

Legal proceedings began in May 2023, with plaintiffs alleging that O’Neal knew NFTs were unregistered securities but promoted them independently of his cryptocurrency ventures. They also claimed that the NBA legend left the project after the collapse of FTX, which led to a significant drop in the value of the collection.

Despite his efforts to dismiss the lawsuit, the court allowed it to proceed. In August 2024, Judge Moreno ruled that the plaintiffs had correctly alleged that the NFTs functioned as securities and that O’Neal was acting as a seller.

After more than a year of litigation, lawyers for both sides settled in November 2024. The proposed $11 million settlement would allow affected investors to recoup their losses and cover legal fees.

If approved, the proposal will end this file. However, O’Neal remains involved in other cryptocurrency-related legal matters, such as litigation related to the FTX exchange.

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