NBA Legend Shaquille O'Neal Settles Lawsuit Over $11 Million Astrals NFT Deal

Update Nov. 20, 9:16 am UTC: This article has been updated to add comments from Adam Moskowitz.

Former NBA star player and sports commentator Shaquille O’Neal has agreed to a class action settlement fund for Astral non-fungible token (NFT) investors. The NBA legend also resolved claims in a separate FTX lawsuit and is awaiting court approval.

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Background on the Lawsuit

On May 23, O’Neal was served with the Astral NFT lawsuit during an NBA game at Miami’s Kaseya Center, formerly the FTX Arena. The class-action lawsuit involved his promotion of the Astrals NFT project.

The plaintiffs claimed that O’Neal’s celebrity status played a significant role in promoting the Astrals NFT collection, which consisted of 10,000 digital collectibles created by artist Damien Guimoneau. Users bought into the project because of O’Neal’s promotions, believing they could socialize and play with others, including the basketball star.

The Decline of Astral NFTs

However, after a brief period of hype, the value of Astral NFTs dropped significantly, resulting in financial losses for investors. The plaintiffs filed a lawsuit against O’Neal in September 2023, claiming he had distanced himself from the project despite his initial enthusiasm.

Settlement and Court Approval

After months of legal back-and-forth, O’Neal signed an $11 million settlement for promoting Astrals NFTs in exchange for dismissing the class-action suit. The judge recognized that the plaintiffs had properly alleged that the former NBA player was a seller of the NFTs.

Comment from Lead Counsel Adam Moskowitz

Lead counsel Adam Moskowitz from The Moskowitz Law Firm praised the judges who presided over the case and O’Neal for his decision to settle. In a statement sent to Cointelegraph, Moskowitz said:

"In this quickly changing crypto landscape, it cannot be overstated how important these federal judges and willing partners are for resolutions."

Moskowitz also believes that O’Neal had stepped up to help other crypto victims. The lawyer also stated that the NBA star was "a victim of both the failed Astrals and FTX platforms."

NFT Sales Volumes on the Rise

O’Neal’s settlement comes as NFTs are recovering sales volumes. In October, NFT monthly sales volumes broke a seven-month downturn, reaching $356 million. This represents an 18% increase compared to September, its lowest month in 2024.

Transactions also showed a 42% increase month-on-month, reaching 7.2 million. In the week leading up to Nov. 17, NFT sales surged by 94%, with the digital collectibles market recording $181 million in sales.

The Surge in Volume

The surge in volume was due to increased trades in leading NFT blockchains like Ethereum, Bitcoin, and Solana. This uptick in activity has been fueled by gains in Bitcoin and the broader crypto market.

Conclusion

Shaquille O’Neal’s settlement with Astral NFT investors marks a significant development in the world of cryptocurrency and non-fungible tokens. As the industry continues to evolve, it is essential for players like O’Neal to take responsibility for their actions and engage with regulators to ensure a smoother regulatory landscape.

The recovery of NFT sales volumes serves as a positive indicator for the industry’s future prospects. With more artists, collectors, and investors participating in the market, there is potential for increased growth and innovation in the years to come.