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

NBA legend Shaquille O’Neal has agreed to pay $11 million in a settlement with the Astrals $NFT collection to resolve a lawsuit filed by holders.

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

The lawsuit highlights the influx of pop culture figures into web3 spaces during the $NFT boom in 2019. However, by the market downturn in 2022 and 2023, many investors were left holding devalued tokens and expressed frustration in Discord servers.

O’Neal famously shared the Wolf of Wall Street “I’m not f***ing leaving” meme on Astrals’ Discord, encouraging holders not to sell their tokens, even as bankruptcies like FTX triggered broader declines in virtual currencies and $NFT markets. Astrals $NFT investors eventually filed a class action lawsuit against O’Neal in a Florida district court. Despite his attempts to evade subpoenas and dismiss the case, the court proceeded with the claims.

Miami District Judge Federico Moreno ruled that Astrals NFTs functioned as securities under the law. The ruling also referenced Galaxy, a decentralized autonomous organization token that O’Neal had previously promoted.

The $11 million settlement awaits Judge Moreno’s approval to become binding. If approved, the funds will allow investors to recover losses and cover legal expenses.

Elsewhere, O’Neil is also part of a consolidated litigation connected to embattled FTX crypto exchange. A roster of celebrities, including O’Neil and Tom Brady, starred in Super Bowl ads and other FTX promotional deals.