Former NBA legend Shaquille O’Neal sued over his Astrals NFT project
Shaquille O’Neal, a former NBA star, is being sued collectively over unethical promotional activities for his Astrals NFT project.
Shaq sued over Astrals NFT
According to Ariel Givner, Esq., an IP and corporate attorney in the web3 industry, Shaquille is being sued in a class action lawsuit for his Astrals NFT project. Givner shared this information on Twitter. She emphasized the legal basis for the litigation in her tweet, claiming that the plaintiffs claimed the allegedly Shaq-inspired Astrals tokens and NFTs were unregistered securities.
Despite being aware of the legal consequences of selling unregistered cryptocurrency securities, the case was filed in federal court in Florida and alleged that Shaq promoted the tokens. Several famous people are named defendants in the lawsuit, including the platform’s founder, Sam Bankman-Fried.
According to the lawsuit, Astrals NFTs must fulfill the requirements to be classified as securities and will be assessed using the Howey Test, a guideline for identifying investment contracts.
In 2022, Shaq founded the Astrals Project with the help of his son, Myles O’Neal, and music manager, Brian Bayati. The project aimed to promote investment in a virtual environment where users could communicate with distinctive avatars bought and sold on a market.
About the lawsuit
The lawsuit exposes O’Neal’s Astrals Project advertising, particularly his use of a sequence of NFTs known as the “Shaq Signature Pass.” Only 50 of these NFTs will ever be made available. The complaint claims that Shaq utilized the Astrals Project to support FTX and constantly promoted Astrals NFTs on his social media profiles to boost his credibility.
In addition, concerns about claims that O’Neal has been avoiding serving the court papers have come up in the case. Shaq has distanced himself from FTX, claiming he was just hired as a spokesperson, even though he appeared in advertising for the company.