In recent years, NFTs (non-fungible tokens) surged in popularity, with celebrities, athletes, and even sports teams jumping on the bandwagon. However, the rapid rise was met with an equally swift fall, leaving many investors with digital assets of diminished value. Among those caught in the NFT controversy is NBA legend and TNT analyst Shaquille O’Neal, who is now embroiled in a legal battle over his involvement in promoting the Astrals NFT project.
O’Neal has previously been at the center of crypto-related disputes, notably attempting to avoid being served in a lawsuit concerning the failed cryptocurrency exchange FTX. Now, a new lawsuit has surfaced, accusing him of hyping up the Astrals NFT project, only for the market to collapse afterward. The Astrals project involved 10,000 3D avatar NFTs and a decentralized autonomous organization (DAO) intended to incubate innovative projects. O’Neal was a prominent face of the project, encouraging investors to “hop on the wave before it’s too late.” Despite the hype, the value of the Astrals NFTs and related financial products plummeted, leading to investor losses.
A U.S. court has partially allowed the class-action lawsuit against O’Neal to move forward. While the court did not deem him a “control person” within the project, he must defend himself against claims of being a “seller” who actively promoted the NFTs. This case could have far-reaching consequences for the NFT and crypto markets, especially if O’Neal is found liable for promoting unregulated securities.
The fall of the NFT market has left many investors questioning the value of these digital assets, and O’Neal’s legal troubles highlight the potential risks for celebrities who endorse such speculative investments. If O’Neal is held responsible, it may set a precedent for other high-profile figures who promoted NFTs during the height of the craze.