A US court has issued a mixed ruling in a class action lawsuit against basketball legend Shaquille O’Neal. The case focuses on O’Neal’s involvement in the Astrals NFT scheme. A court order dismissed one charge while advancing another.
Shaquille O’Neal’s Involvement in Astrals NFT Scheme
The U.S. District Court for the Southern District of Florida, Miami Division, distinguished different levels of involvement in encryption projects.
While rejecting O’Neill’s claim that he was the “controller” of the Astrals project, the court held that because he successfully solicited product purchases, his role could be classified as that of a “seller.”
Astrals is a collection of 10,000 NFT 3D avatars linked to a decentralized autonomous organization (DAO), and O’Neill allegedly urged investors to “jump on this wave before it’s too late.”
Legal Implications and Securities Issue
The lawsuit alleges that O’Neill continued to advance through the ranks even after FTX collapsed and allegedly subsequently quit the project, causing Astral’s financial products to plummet in value.
Notably, the court did not dismiss Astrals’ claim that it sold unregistered securities. Adam Moskowitz, a lawyer representing investors, said the ruling could bring clarity to other pending cryptocurrency class-action lawsuits involving celebrity promotions.
Upcoming Response and Future Actions
O’Neal and the Astral Project have until September 12, 2024, to respond to the allegations.
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