Key Takeaways:
- Shaquille O’Neal faces a class action lawsuit for promoting the Astrals NFT project, accused of selling unregistered securities.
- A U.S. court upheld claims that O’Neal’s promotional activities make him a “seller,” despite his defense that he had no control over the project.
- The lawsuit may impact other crypto-related legal cases, with O’Neal and Astrals required to respond by September 12, 2024.
Shaquille O’Neal faces a class action lawsuit over his role in promoting the Astrals NFT project.
While a U.S. court dismissed claims that O’Neal had control over the project, it upheld allegations that Astrals sold unregistered securities.
Shaquille O’Neal’s legal battle in Astrals NFT case sees partial dismissal https://t.co/erUcTG0TQd
— The Block (@TheBlock__) August 19, 2024
The lawsuit accuses O’Neal of encouraging investment in Astrals, a collection of 10,000 NFTs with a governance token called Galaxy, before allegedly abandoning the project after the FTX collapse, causing a significant drop in value.
Despite O’Neal’s defense that he wasn’t an officer or director, the court deemed him a “seller” due to his promotional activities.
JUST IN: FLORIDA COURT DISMISSES SOME ALLEGATIONS AGAINST SHAQUILLE O’NEAL REGARDING ‘ASTRALS’ NFT PROJECT PER THE BLOCK
— BSCN Headlines (@BSCNheadlines) August 19, 2024
The ruling may influence other crypto-related lawsuits.
O’Neal and Astrals must address the remaining allegations by September 12, 2024.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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