NBA legend Shaquille O’Neal has agreed to pay $11 million to settle a class-action lawsuit regarding his promotion of the failed Astrals NFT project. A federal judge in Florida approved the settlement on April 1, with the details being made public in recent days.
Basketball Icon Caught In Crypto Controversy
The lawsuit, initiated in May 2023, alleged that O’Neal promoted the sale of unregistered securities through the Solana-based Astrals NFT collection. As a result of this settlement, those who purchased Astrals NFTs or the corresponding GLXY tokens between May 2022 and January 15, 2024, will be entitled to compensation from the settlement fund.
Judge Federico Moreno previously indicated that the plaintiffs presented a plausible argument that O’Neal acted as a seller according to securities law. This settlement follows an extensive legal battle, with O’Neal reaching an agreement with the plaintiffs last November.
The next shot – Shaquille O’Neal and #Astrals NFTs + $GLXY tokens.
Shaq actively promoted the tokens, calling himself “Astrals Chief Astronaut.” But after the FTX collapse in November 2022, the project’s reputation took a hit, and token sales slowed significantly. $GLXY is down… pic.twitter.com/quHziiGCdA
— 11th.com (@11thestate) March 28, 2025
Lawyers Take Home $2.9 Million Slice
The court approved attorney fees totaling $2.9 million and associated costs as part of the settlement arrangement. Judge Moreno deemed these fees “fair and reasonable,” with no objections raised from plaintiffs regarding the compensation for legal representation.
Attorneys successfully argued that investors lost money due to O’Neal’s marketing efforts for the project, emphasizing how he urged potential investors to “hop on the wave before it’s too late,” a statement that later became a point of contention during the lawsuit.
Failed Project Promised Virtual Meetings With Shaq
The Astrals project launched in April 2022, featuring 10,000 unique 3D avatars crafted by artist Damien Guimoneau. It promoted a fully immersive metaverse experience that promised user interactions not only among themselves but also with O’Neal personally.
Despite the hype, the collection has shown little to no activity over the last two years, according to user data from NFT marketplace OpenSea.
Reports indicate that O’Neal maintained his support for the project even after the significant downturn of the major cryptocurrency exchange FTX in November 2022.
In a minor victory for O’Neal, the court dismissed allegations labeling him a “control person” within the project. This designation would have suggested he possessed real authority over its operations beyond being the project’s prominent figurehead.
Shaquille O’Neal to Face Legal Action Over Astrals NFT Project and FTX Involvement TLDR
Shaquille O’Neal faces a class action lawsuit over his involvement in the Astrals NFT project
The court dismissed allegations that O’Neal was a “control person” but found he could be considered a seller. pic.twitter.com/tslw52EwOw
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BREAKING NEWS
(@NotAnotherTip) August 19, 2024
NFT Market Continues Downward Spiral
This settlement occurs in the context of a broader decline in the NFT market, struggling to recover from its peak. For the week concluding April 7, 2025, total NFT sales volume stood at only $27 million, a stark contrast to weekly volumes exceeding $2 billion during the market’s height in 2021.
This ongoing downward trend saw trading volumes drop by more than 60% in February alone, marking a continuing decline that began in early 2024. It indicates that the once-booming digital collectibles market is still in a prolonged slump.
Featured image from Megan Briggs/Getty, chart from TradingView
