Shaquille O’Neal Agrees to $11 Million Settlement Over NFT Promotion Controversy
In a significant legal resolution, NBA legend Shaquille O’Neal has consented to a substantial $11 million settlement to resolve a class-action lawsuit linked to his endorsement of the unsuccessful Astrals NFT initiative. The settlement, approved by a federal judge in Florida on April 1, was made public a week later, according to official court documents.
Basketball Superstar Entangled in Cryptocurrency Legal Dispute
Initially filed in May 2023, the lawsuit accused O’Neal of promoting unregistered securities through the Solana-based Astrals NFT collection. Investors who purchased Astrals NFTs or GLXY tokens from May 2022 to January 15, 2024, are now eligible for financial compensation from the settlement fund. Judge Federico Moreno acknowledged that the plaintiffs presented a credible argument, asserting that the former NBA icon acted as a seller under securities law. This settlement follows protracted legal negotiations, with O’Neal reaching an agreement with the plaintiffs in November.
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Shaquille O’Neal’s Promotion of Astrals NFTs and GLXY Tokens
O’Neal actively endorsed the tokens, dubbing himself the “Astrals Chief Astronaut.” However, following the collapse of FTX in November 2022, the project’s reputation suffered significantly, leading to a sharp decline in token sales.
Legal Representatives Secure $2.9 Million in Fees
As part of the settlement agreement, the court sanctioned $2.9 million in attorney fees and associated costs. Judge Moreno deemed these fees “fair and reasonable,” noting that none of the plaintiffs contested the lawyers’ compensation. The legal team successfully convinced the court that investors incurred losses due to O’Neal’s promotional activities for the project. Court documents revealed that O’Neal encouraged potential investors to join the venture before it was “too late,” a statement that later became a focal point in the courtroom.
The Unfulfilled Promise of Virtual Engagements with Shaq
Launched in April 2022, the Astrals project offered 10,000 unique 3D avatars, crafted by artist Damien Guimoneau. It was marketed as an immersive metaverse experience, enabling users to interact with each other and O’Neal. Despite its high-profile backing, the collection has shown little activity over the past two years, according to data from the NFT marketplace OpenSea.
Even after the dramatic collapse of FTX, Shaquille O’Neal reportedly continued to publicly support the project. However, the court did provide a minor win for O’Neal by dismissing claims that he was a “control person” within the project, a term that would have implied he had actual operational influence beyond being its celebrity face.
The Declining NFT Market
This legal settlement occurs amid a broader decline in the NFT market, which is struggling to reclaim its former heights. As of the week ending April 7, 2025, total NFT sales volume was a mere $27 million, a stark contrast to the over $2 billion weekly volumes seen during the market’s peak in 2021. The downward trend persists, with trading volumes plummeting by over 60% in February alone, continuing a slump that began in early 2024, indicative of ongoing challenges in the digital collectibles market.
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