Former NBA Star Resolves Class Action Alleging Unregistered Securities Offering
Shaquille O’Neal, the retired NBA legend turned entrepreneur, has received final court approval to settle a class-action lawsuit related to his Solana-based Astrals NFT project. The settlement, totaling $11 million, was approved by Florida federal judge Federico Moreno on April 1, with the ruling made public on April 8.
The lawsuit, originally filed in May 2023, accused O’Neal of promoting and selling unregistered securities through the Astrals NFT collection and its associated GLXY token. Plaintiffs claimed that O’Neal’s involvement and public endorsement led to investment losses, especially as the project faded into obscurity during the ongoing NFT bear market.
“The fee sought by lead class counsel has been reviewed and approved as fair and reasonable by plaintiffs,” the judge’s order noted.
Breakdown of the Settlement
The agreement will:
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Create a fund of up to $11 million for eligible claimants
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Allocate $2.9 million for attorney fees and related costs
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Cover all buyers of Astrals NFTs from May 2022 to January 15, 2025
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Include those who purchased GLXY tokens during the same period
O’Neal agreed to the settlement in November 2023, months after the court acknowledged he could be considered a “seller” under U.S. securities law, due to his promotional role in the NFT project.
Astrals Project Fades Into Obscurity
The Astrals NFT collection launched in April 2022 with 10,000 unique 3D avatars designed by artist Damien Guimoneau, promising an immersive social and gaming experience. O’Neal’s star power was a central feature of the marketing campaign, positioning him as a bridge between Web2 celebrity culture and Web3 innovation.
But the momentum didn’t last. According to OpenSea, the Astrals project has seen no notable trading activity for over two years, and its community engagement has all but evaporated.
The broader NFT market reflects this trend. Data from CryptoSlam shows weekly NFT sales totaled just $27 million as of April 7, a dramatic collapse from the $2 billion-plus weekly highs seen at the end of 2021.
Final Thoughts: A Reality Check for Celebrity Crypto Projects
The O’Neal settlement is the latest example of celebrity-driven NFT projects facing legal and reputational blowback as market conditions worsen. While many stars rushed into the NFT space during its explosive 2021–2022 boom, the lack of ongoing development, utility, or legal clarity has left some open to allegations of investor harm.
As U.S. courts increasingly scrutinize celebrity-backed token sales, this case could serve as a template for future litigation, particularly as the SEC continues to define the boundaries of what constitutes an unregistered security in digital assets.
For now, O’Neal walks away without admitting wrongdoing, but with a multimillion-dollar reminder that in Web3, star power alone is no longer enough—especially when financial regulation enters the game.
