Former basketball player Shaquille O’Neal has agreed to settle a lawsuit related to the Astrals non-fungible token (NFT) project, committing to pay $11 million. The settlement awaits court approval, which would conclude the legal dispute tied to O’Neal’s involvement in the project.
The lawsuit began last year when investors in the Astrals project accused O’Neal of promoting and selling unregistered securities.
The case revolved around Astrals NFTs, described as 10,000 “metaverse-ready 3D avatars,” and the associated Galaxy token.
While O’Neal was not directly in charge of the project, a Florida court ruled in August that he played the role of a “seller,” linking him to its promotion.
Legal issues surrounding NFTs are not new, with other high-profile figures and companies facing similar accusations.
In June, Dapper Labs settled a lawsuit over its NBA Top Shot NFTs for $4 million. In July, a U.S. judge rejected DraftKings’ effort to dismiss a class action claiming its NFTs were unregistered securities. Shortly after, DraftKings shut down its Reignmakers NFT game and marketplace, citing legal risks.
Last November, Cristiano Ronaldo was sued over his NFT collaboration with Binance.
Last year, media company Impact Theory paid a $6.1 million penalty for issuing unregistered NFT securities, while the creators of Stoner Cats NFTs were fined $1 million for similar violations.
Regulatory action has continued this year. Earlier this month, the SEC issued a Wells notice to Immutable, suggesting legal action might follow over alleged securities law violations tied to its IMX token. The SEC also targeted OpenSea, raising concerns about unregistered securities sold on its platform.
