NBA legend Shaquille O’Neal has agreed to pay $11 million to settle a class-action lawsuit over his promotion of the failed Astrals NFT venture. A Florida federal choose authorized the settlement on April 1, with the order changing into public simply this week on April 8, in accordance with courtroom paperwork.
Basketball Icon Caught In Crypto Controversy
The lawsuit, first filed in May 2023, claimed O’Neal promoted the sale of unregistered securities by the Solana-based Astrals NFT collection. Investors who purchased Astrals NFTs or the venture’s GLXY tokens between May 2022 and January 15, 2024, will now be eligible for compensation from the settlement fund.
Judge Federico Moreno beforehand acknowledged that plaintiffs had made a believable case that the previous NBA star acted as a vendor below securities regulation. The settlement comes after months of authorized back-and-forth, with O’Neal reaching an settlement with plaintiffs final November.
The subsequent shot – Shaquille O’Neal and #Astrals NFTs + $GLXY tokens.
Shaq actively promoted the tokens, calling himself “Astrals Chief Astronaut.” But after the FTX collapse in November 2022, the venture’s fame took a success, and token gross sales slowed considerably.$GLXY is down… pic.twitter.com/quHziiGCdA
— eleventh.com (@11thestate) March 28, 2025
Lawyers Take Home $2.9 Million Slice
The courtroom authorized $2.9 million in lawyer charges and associated prices as a part of the settlement bundle. Judge Moreno dominated these charges had been “fair and reasonable,” and famous that not one of the plaintiffs objected to the quantity attorneys would obtain.
The attorneys had been capable of persuade the courtroom that traders misplaced their cash due to O’Neal’s advertising campaigns for the venture.
Court papers point out that O’Neal urged potential traders to “hop on the wave before it’s too late,” one thing that got here to hang-out him in courtroom.
Screenshot of courtroom doc on Shaq's authorized settlement. Source: Courtlistener
Failed Project Promised Virtual Meetings With Shaq
Astrals had been launched in April 2022, offering 10,000 one-of-a-kind 3D avatars designed by artist Damien Guimoneau. The enterprise offered itself as a completely immersive metaverse expertise by which customers would be capable of work together with different customers in addition to with O’Neal himself.
Despite the star energy behind it, the gathering has proven zero indicators of exercise over the previous two years based mostly on information from NFT market OpenSea.
O’Neal reportedly continued to help the venture publicly even after the most important cryptocurrency alternate FTX collapsed in November 2022.
The courtroom did throw O’Neal one small victory, dismissing claims that he was a “control person” throughout the venture—a designation that might have advised he held precise energy over its operations somewhat than simply serving as its well-known face.
Shaquille O’Neal to Face Legal Action Over Astrals NFT Project and FTX Involvement
TLDRShaquille O’Neal faces a category motion lawsuit over his involvement within the Astrals NFT venture
The courtroom dismissed allegations that O’Neal was a “control person” however discovered he may very well be cons… pic.twitter.com/tslw52EwOw
— 🛑 BREAKING NEWS 🛑📢🔔⚠💥❗💬 (@NotAnotherTip) August 19, 2024
NFT Market Continues Downward Spiral
The settlement comes because the broader NFT market struggles to regain its former glory. Total NFT gross sales quantity stood at simply $27 million for the week ending April 7, 2025, a dramatic drop from the $2 billion-plus weekly volumes recorded throughout the market’s peak in 2021.
This downward development has been ongoing, with buying and selling volumes falling by greater than 60% in February alone. The drop continues a slide that started in early 2024, suggesting the once-hot digital collectibles market stays in a protracted droop.
Featured picture from Megan Briggs/Getty, chart from TradingView
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