- Lawsuits Target NBA Legend Shaquille O’Neal Over Crypto Endorsements
- Legal Battles Unfold: Allegations of Misrepresentation in FTX and Astrals NFT Projects
- Implications for Celebrities and the Crypto Industry: Shaquille O’Neal’s Legal Response Awaited
Basketball legend Shaquille O’Neal found himself in the legal spotlight once again as he was served with two separate lawsuits during an NBA playoff game held at the Kaseya Center (formerly FTX Arena) in Miami.
According to Adam Moskowitz, the lawyer involved in both lawsuits, process servers were able to reach O’Neal at the arena during the game, serving him with the FTX class-action lawsuit and the new separate class-action suit related to Astrals. According to Moskowitz, O’Neal had the server ejected from the stadium after being served. According to a court lawsuit, previous attempts to serve legal papers to O’Neal in various locations had been unsuccessful.
The filing stated:
“Mr. O’Neal is the sole remaining defendant in this matter who has still not been served. Despite Plaintiffs’ dozens of attempts in multiple states and countries, to either effect service on him or have him (or a designated agent) accept service of process.”
Sued for Allegedly Misleading Investors in FTX and Astrals NFT Projects
The FTX lawsuit, which includes celebrities such as Steph Curry, Tom Brady, Larry David, and FTX founder Sam Bankman-Fried, focuses on their alleged endorsement of the now-defunct exchange. The lawsuit accuses them of promoting an exchange that later went bankrupt, causing financial losses for users. O’Neal said in an FTX commercial:
“I’m just an everyday guy who puts on a size 23 shoes and checks his FTX account. I’m all in, are you?”
The second lawsuit explicitly targets O’Neal and his involvement in the Astrals NFT project. The complaint alleges that Astrals tokens were unregistered securities, and the plaintiffs claim to have suffered investment losses due to O’Neal’s actions. The lawsuit questions whether O’Neal is still involved in the Astrals project, noting his absence from the project’s Discord since January.
The Moskowitz Law Firm and Boies Schiller Flexner LLP have filed lawsuits against O’Neal. Previously, O’Neal’s lawyers argued that the process servers for the FTX suit used inadequate methods to serve him. The NBA legend claimed in court that Process servers attempted to serve legal papers to him by throwing them in front of his moving car. The defendant did not stop to retrieve the documents, and they were left on the road. However, with the recent service during the NBA game, the legal actions can now proceed.
The Astrals lawsuit accuses O’Neal of violating securities laws and claims that the NFTs offered for sale were linked to his celebrity status and promotional efforts. The lawsuit further highlights O’Neal’s involvement in the digital assets industry and his promotion of Astrals NFTs on social media.
Astrals, a Solana-based NFT project, aimed to create a virtual world where users could interact through unique avatars and trade them through a marketplace. The lawsuit alleges that O’Neal’s involvement in the project misled investors and caused financial harm.
Do Astrals NFTs Constitute Unregistered Securities? – Howey Test
The question of whether the Astrals NFTs constitute unregistered securities will be determined based on the Howey Test, a standard used to determine if a transaction qualifies as an investment contract. The plaintiffs argue that the Astrals NFTs meet the criteria of an investment contract and should be considered securities.
O’Neal’s involvement in the FTX and Astrals lawsuits has attracted attention, as process servers faced challenges in serving him with the legal documents. The legal actions against O’Neal and the other defendants will now proceed, allowing the merits of the cases to be addressed.
The lawsuits involving O’Neal also shed light on the evolving landscape of celebrity endorsements in the crypto space. As cryptocurrencies and NFTs become more popular, many celebrities have been approached to endorse or promote various projects. These lawsuits raise questions about the responsibility of celebrities in vetting the projects they support and the potential legal consequences they may face if those projects are found to be involved in fraudulent or illegal activities.
It remains to be seen how the lawsuits will unfold and what impact they will have on the broader crypto and NFT realms, as well as on the reputation of celebrities endorsing such projects.
