Shaquille O’Neal, the US basketball legend, recently scored a partial victory in a Miami court regarding his involvement in the Astrals non-fungible token (NFT) project, dismissing some of the claims in the class action lawsuit filed against him in May 2023.
Astrals is an NFT project on the Solana blockchain featuring 10,000 3D avatars designed to drive investment in a virtual environment known as Astralverse. This world is managed by a decentralized autonomous organization (DAO) that uses its own cryptocurrency, Galaxy.
Judge Federico Moreno ruled that while O’Neal did act as a “seller” in the project, he was not a “control person.” The court also did not dismiss the claim that the NFTs and Galaxy tokens could be considered securities.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe – We publish new crypto explainer videos every week!
Court records show that O’Neal actively promoted the Astrals project online, even promising in one video that the team would work until the NFTs reached 30 SOL in value. However, the plaintiffs argue that O’Neal later abandoned the project, causing the NFTs to lose value.
The plaintiffs further stated:
O’Neal knew or should have known of potential concerns about regulatory issues concerning the sale of unregistered crypto securities, but nevertheless extensively promoted the Astrals Project to his large following on a multitude of social media platforms.
The court has given O’Neal and the Astrals team until September 12 to respond to the remaining allegations.
This ruling leaves several legal questions unresolved, with a final decision still pending on the remaining claims against O’Neal.
In other news, YouTuber and crypto journalist Stephen Findeisen, better known as Coffeezilla, has recently addressed a defamation lawsuit filed against him by social media influencer Logan Paul. The lawsuit accuses Coffeezilla of spreading false statements about Paul’s failed NFT project CryptoZoo.
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.
