Verdict in Shaquille O’Neal’s NFT Case: Key Insights

MetaversePlanet August 20, 2024

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An important decision has been announced in the litigation process concerning Shaquille O’Neal’s Astrals NFT project. According to the ruling, it was determined that O’Neal was involved in the project solely as a seller and did not have a controlling role.

Significant developments continue to unfold in the case involving NBA legend Shaquille O’Neal’s Solana-based NFT project, Astrals. The famous basketball player was identified as a “salesman” within the project, and was exempted from being labeled as a “controller.”

Shaquille O’Neal Recognized as Salesman, Control Claims Denied

Verdict in Shaquille O'Neal's NFT Case: Key Insights

Famous basketball player Shaquille O’Neal is once again making headlines with his cryptocurrency investments. A court case in Miami has addressed some of the accusations related to O’Neal’s NFT project, Astrals, which is built on the Solana blockchain network.

The court has characterized O’Neal’s role in the project as that of a “salesman” but has rejected the designation of “controller.” This decision introduces a new aspect to the ongoing debate about the legal status of crypto assets.

The Astrals project is centered around the concept of the metaverse, which has garnered significant attention in the digital world. The project includes the creation of a virtual universe called the Astralverse, along with 10,000 specially designed avatars for use within this universe. Another key component is the DAO (Decentralized Autonomous Organization) and its governance token, Galaxy.

O’Neal is known for promoting the project on social media and predicting that the value of the NFTs would reach 30 SOL. Plaintiffs allege that he continued to support the project even after the collapse of the FTX cryptocurrency exchange, from which he subsequently distanced himself.

Judge Federico Moreno ruled that O’Neal did not have real control over the project but should be considered a “seller” due to his successful promotion of the project.

A significant point of contention in the case was whether Astrals NFTs and Galaxy tokens qualify as financial securities. The court dismissed the objection that these assets are not securities.

O’Neal’s legal team argues that their client is neither a seller nor a controller, and that the digital assets involved in the project should not be legally classified as securities. The court has given O’Neal and the Astrals project until September 12 to present their defense.