NBA’s Shaq Slapped with $11M Penalty over Astrals NFT Scandal

• Basketball legend Shaq is facing penalties over an NFT case.
• The former play is staring down at millions in fines.
• The crypto industry has been fraught with high-profile missteps all year.

From sports stars to entertainment figures and influencers, the crypto industry has seen the entry of several high-profile figures across many sectors. Among them was Shaquille O’Neal, better known as Shaq, who joined the frenzy in 2023 with the promotion of an NFT project. However, the endeavor took a dark turn, collapsing under questionable circumstances and landing him in legal trouble.

After months of disputes and negotiations, the saga may finally end.

Shaq Takes a Loss Over NFT Promotions

Ex-basketball player Shaq may be making his way out of Astral NFTs class-action lawsuit, but not without writing a big cheque. According to recent reports, O’Neal has agreed to an $11 million settlement to resolve allegations surrounding his promotion of the non-fungible tokens.

The lawsuit, filed back in May 2023 , alleged that the former player founded and actively shilled the Solana-based Astrals NFT project, which constituted the offering and sales of unregistered securities. Plaintiffs argued several investors were drawn to the project due to Shaq’s celebrity status, only for the assets to crash in value, leaving them with significant financial losses.

The class-action lawsuit will be dismissed with the $11 million settlement, marking the end of a year-long legal saga that has haunted the basketball legend. The reports added that Shaq is also working to resolve a separate lawsuit connected to his involvement with the now-defunct crypto exchange FTX . The basketball star is one of several celebrities under scrutiny for their involvement with FTX , which collapsed in late 2022.

Shaq’s downfall in the Astrals NFT saga is just one in the series of controversies involving celebrity-backed crypto projects, a trend that has been on the rise this year.

Celebrities In Crypto: A Recipe for Disaster?

The crypto and blockchain industry has become a hotspot for celebrities and influential figures looking to capitalize on market hype for quick financial gains. From flashy promotions to dubious endorsements, 2024 has seen a string of high-profile names attach their credibility to projects.

Notable figures like Lionel Messi , Caitlyn Jenner , Cardi B , and Andrew Tate , among others, have been caught in the celebrity-backed projects saga this year, each tied to their individual questionable projects.

However, their mere entry does not create the problem. The real issue lies in the credibility and longevity of these ventures, as most fail to deliver on their promises and vanish , leaving lasting scars at the expense of those who trusted in their celebrity backers.

The troubling pattern of flashy promotions followed by deep crashes has damaged these figures’ reputations, serving as a reminder for investors to exercise caution.

On the Flipside

• The Shaq-tied Astrals NFT project has since gone under the radar, last seen in December 2023.
• Celebrities’ lack of caution in endorsing questionable projects enables unethical individuals to leverage their influence for dishonest gains. 
• Other celebrities, including TV star Kim Kardashian and American boxer Floyd Mayweather, have also faced regulatory scrutiny and penalties in the past for similar promotions.

Why This Matters

Shaq’s $11 million penalty in the Astrals NFT scandal serves as a harsh reminder of the consequences of promoting dubious projects. It could potentially serve as a warning for his peers to avoid misleading investors and facing legal repercussions.

Read more about the latest chapter of the 2024 celebrity-tied projects craze here:
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