American professional basketball player Shaquille O'Neal has agreed to pay $11 million in compensation to settle a lawsuit filed by the owners of the NFT collection Astrals on the Solana blockchain.
The lawsuit involved accusations of promoting unregistered securities, which were ultimately classified as the NFT Astrals. According to court documents, as the main public face of the project, the athlete utilized his fame to attract investments into the NFT collection and its associated tokens.
#newpfp who dis? @Astrals_NFTpic.twitter.com/DzWocnR1GT
— SHAQ (@SHAQ) March 7, 2022
The Astrals NFT collection featured 10,000 metaverse avatars and a governance token for the DAO named Galaxy (GLXY). The lawsuit was initiated after investors experienced losses, partly due to the downturn in the cryptocurrency and NFT markets following the collapse of the FTX exchange.
Under the proposed deal, O'Neal and the companies linked to Astrals will allocate $11 million to compensate investors for losses and cover legal expenses. However, official court approval is still required to finalize the settlement.
Meanwhile, the Astrals NFT page on X has not been active since 2023, and while the website still exists, it is also not being updated.
Nevertheless, the NFT market is more active than it appears. In October 2024, sales volumes for these tokens rose to $356 million, marking the first increase in seven months.
Source: Law.com
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