- O’Neal, together with his son Myles debuted the Astrals Project in 2022.
- The NBA legend stressed the rarity of these NFTs, saying that only fifty will ever be created.
Class action litigation against NBA legend Shaquille O’Neal and his Astrals NFT project was announced on Twitter by web3 IP and corporate attorney Ariel Givner, Esq. She explained the lawsuit’s basis on Twitter. Noting that the plaintiffs claimed Shaq’s putative invention, the Astrals tokens, and NFTs, were unregistered securities.
The action, filed in federal court in Florida, alleges that O’Neal marketed the tokens while knowing that the sale of unregistered crypto securities might run afoul of applicable regulations. Several famous people, including platform founder Sam Bankman-Fried and other celebrities who promoted the app, are named as defendants in the lawsuit.
Trouble Continues for the NBA Legend
According to the lawsuit, the Howey Test, a method for defining investment contracts, will be used to determine whether or not Astrals NFTs qualify as securities.
O’Neal, together with his son Myles and music manager Brian Bayati, debuted the Astrals Project in 2022. The project’s goal was to attract funding for a virtual environment. In which individuals could exchange and utilize customized avatars with one another.
Moreover, in the case, O’Neal is accused of promoting the Astrals Project. In particular via an NFT series dubbed the “Shaq Signature Pass.”
O’Neal stressed the rarity of these NFTs, saying that only fifty will ever be created. They could be won via community activity or the auctioning off of Astrals tokens. According to the lawsuit, O’Neal boosted his own reputation by endorsing FTX. And promoting Astrals NFTs on his social media pages.
O’Neal rejects the allegations made by the investors’ attorneys, who say they spent months attempting to serve him at his home, office, and vehicle. O’Neal has distanced himself from FTX, the firm he advertised for, saying that he was just a paid representative.
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