Basketball legend Shaquille O’Neal might still be dribbling through legal hoops in a class-action lawsuit concerning Astral NFTs. A recent court ruling has kept O’Neal in the spotlight, as the judge found substantial grounds for claims that he was a “seller” of these NFTs and that they might qualify as securities under U.S. law. Here’s a rundown of the latest developments in this ongoing legal drama.
The Legal Slam Dunk: O’Neal Must Defend NFT Claims
The lawsuit, which has been in play for over a year, accuses Shaquille O’Neal of promoting the Astral NFT project and alleges that these NFTs were unregistered securities. On August 16, Judge Federico Moreno of a Miami federal court delivered a pivotal decision. While the judge dismissed claims that O’Neal had control over the Astrals NFT project, he ruled that the plaintiffs had enough evidence to proceed with the allegation that O’Neal was a “seller” of the NFTs.
In his ruling, Judge Moreno confirmed that the plaintiffs had adequately argued that both Astrals and Galaxy tokens could be considered “securities” subject to federal laws. This means that O’Neal will have to address these claims in court.
The Crux of the Case: Allegations and Arguments
According to the lawsuit filed in May 2023, O’Neal allegedly promoted the Astral NFTs online, encouraging potential investors to “hop on the wave before it’s too late.” At the time, the NFTs were priced with a floor value of 30 Solana (SOL)—around $90 when the collection launched in March 2022. However, the lawsuit claims that after O’Neal left the project, the value of both the Astrals NFTs and the Galaxy token experienced a significant drop.
O’Neal’s legal team had sought to have the case dismissed, arguing that he was neither a “seller” nor a “control person” of the Astrals project and that the NFTs and Galaxy token should not be classified as securities under U.S. law. Despite these arguments, Judge Moreno’s ruling means that O’Neal will need to continue addressing these claims.
What’s at Stake: NFT Valuation and Future Implications
As of now, the floor price of the Astrals NFT collection has sunk to approximately 0.106 SOL, worth about $15.50, according to NFT marketplace Magic Eden. The Astrals project is based on the Solana blockchain and features 10,000 NFTs, a metaverse called Astralworld, and a decentralized autonomous organization (DAO) with its own governance token, Galaxy.
O’Neal has until September 12 to respond to the claims made in the lawsuit. As of now, neither O’Neal nor his legal team have commented publicly on the ruling.
The Road Ahead: What’s Next for O’Neal and Astrals?
The legal battle over the Astral NFTs is far from over. With the court’s ruling keeping O’Neal in the fray, the next steps will likely involve detailed legal arguments and possible negotiations. The outcome could have significant implications not only for O’Neal but also for the broader NFT and crypto communities, particularly in how digital assets are regulated and promoted.
Stay tuned as this case unfolds and potentially sets new precedents in the intersection of sports celebrity endorsements and the evolving world of NFTs.
