Shaquille O’Neal Settles Astrals NFT Lawsuit for $11M
Former NBA superstar Shaquille O’Neal has agreed to a final $11 million settlement in a class-action lawsuit related to his promotion of the Astrals NFT project, a Solana-based digital asset collection. The resolution, approved by U.S. District Judge Federico Moreno on April 1 and made public on April 8, concludes nearly a year of legal proceedings.
Details of the Settlement
The lawsuit, filed in May 2023, alleged that O’Neal acted as a promoter and co-launcher of Astrals NFTs, and in doing so, participated in the unregistered sale of securities. Investors claimed they suffered significant financial losses as a result of O’Neal’s endorsement of the project.
Under the approved agreement, an $11 million fund will be established to compensate individuals who purchased Astrals NFTs or the project’s native GLXY tokens between May 2022 and January 15, 2024. Additionally, the court approved $2.9 million in legal fees, deeming the amount “fair and reasonable.”
Origins of the Astrals NFT Project
Astrals NFTs launched in April 2022 with a collection of 10,000 unique 3D avatars created by artist Damien Guimoneau. The project pitched itself as a metaverse-based experience where users could interact with their NFTs and even engage with O’Neal virtually. However, the collection saw limited development and user activity, with its presence dwindling on platforms like OpenSea over the past two years.
Despite the downturn of the NFT market following the FTX collapse in November 2022, O’Neal remained publicly supportive of Astrals, continuing to promote it into 2023. The plaintiffs cited this ongoing promotion as a central argument in their claims of financial harm.
Legal Implications and Judge’s Ruling
In August 2024, Judge Moreno ruled that the plaintiffs had plausibly demonstrated that O’Neal acted as a seller under federal securities law. However, the court dismissed claims that he served as a “control person” with operational authority over the project.
The case adds to a growing list of legal challenges faced by celebrities endorsing crypto and NFT ventures. While some claims were ultimately dismissed, the seller designation marked a key turning point in the proceedings.
A Changing Landscape for NFTs and Celebrity Endorsements
The O’Neal settlement comes at a time when NFT market activity has significantly cooled. According to CryptoSlam, total NFT sales volume stood at $27 million during the week ending April 7—down sharply from the $2 billion weekly volumes seen during the 2021 boom.
The market’s contraction has prompted several high-profile exits. Starbucks ended its NFT rewards program in March, GameStop shut down its NFT marketplace in January, and X (formerly Twitter) removed NFT profile picture functionality under Elon Musk’s ownership.
O’Neal’s case underscores the growing risks for celebrities involved in digital asset promotions. As regulatory scrutiny intensifies, this settlement could set a precedent for future litigation concerning influencer-backed NFT and crypto projects.
Conclusion
The Shaquille O’Neal–Astrals NFT case serves as a cautionary tale for public figures engaging with emerging technologies without fully considering legal and regulatory implications. While the $11 million settlement brings closure to the lawsuit, it also sends a clear message to influencers and developers alike: accountability in the digital asset space is no longer optional. As the NFT market matures and compliance frameworks evolve, transparency, responsibility, and investor protection are likely to shape the next phase of growth in Web3.
