Shaquille O’Neal to pay $11m NFT lawsuit settlement

NBA legend Shaquille O’Neal agreed to pay $11 million to settle a lawsuit filed by the owners of the Astrals NFT collection.

Hall of Famer O’Neal reached the settlement following allegations that he promoted unregistered securities tied to the Astrals’ non-fungible token project at Solana (SOL). O’Neal, the collection’s lead celebrity, used his fame to attract investment in Astrals NFTs, according to court documents.

The case highlights the influx of pop culture figures into web3 spaces during the NFT boom of 2019. However, due to the market downturn in 2022 and 2023, many investors were forced to hold devalued tokens and expressed their disappointment on Discord servers.

O’Neal shared Wolf of Wall Street’s famous “I’m not leaving” meme on Astrals’ Discord, encouraging holders not to sell their tokens even as bankruptcies like FTX trigger broader declines in virtual currencies and NFT markets. Astrals NFT investors eventually filed a class-action lawsuit against O’Neal in Florida district court. Despite efforts to evade subpoenas and dismiss the case, the court proceeded with the allegations.

Miami County Judge Federico Moreno ruled that Astrals NFTs function as securities under the law. The decision also referenced Galaxy, a decentralized autonomous organization token that O’Neal has previously supported.

Judge Moreno’s approval is awaited for the $11 million settlement to become binding. If approved, the funds will allow investors to recover losses and cover legal costs.

Elsewhere, O’Neil is also part of a consolidated lawsuit linked to the embattled FTX crypto exchange. A number of celebrities, including O’Neil and Tom Brady, have appeared in Super Bowl commercials and other FTX promotional deals.