Shaquille O’Neal Faces FTX and Astral NFT Lawsuit During NBA Game – Cryptopolitan

by James · May 24, 2023

Former basketball star Shaquille O’Neal has recently found himself at the center of legal controversy. Process servers have attempted to help him with a class action lawsuit regarding his alleged promotion of FTX, as well as a new lawsuit alleging that he founded and backed a Solana-based nonfungible token (NFT) project called Astrals. Surprisingly, process servers were able to reach O’Neal during an NBA playoff game at the Miami sports stadium, formerly known as FTX Arena. This article explores the details of the lawsuits, the allegations against O’Neal, and the potential implications for the former basketball star.

Table of Contents

FTX class action, allegations and background

Shaquille O’Neal has been named as one of the celebrities who allegedly backed FTX, an exchange that recently filed for bankruptcy. The class-action lawsuit accuses O’Neal, along with other notable figures such as Steph Curry, Tom Brady, Larry David and FTX founder Sam Bankman-Fried, of promoting the now-bankrupt exchange. The suit alleges that O’Neal’s endorsement helped mislead investors and potentially exacerbated their financial losses.

Previous attempts to serve O’Neal with the FTX class action had been unsuccessful, with the basketball star claiming that process servers had mishandled the delivery of the papers. However, during a playoff basketball game that O’Neal was commentating at the former FTX Arena (now renamed the Kaseya Center), process servers were able to reach him. Adam Moskowitz, the attorney who filed both lawsuits, confirmed that O’Neal was served with the FTX class action lawsuit during the game.

While O’Neal was on a platform commenting, the process server allegedly delivered the complaint to him. According to Moskowitz, O’Neal later had the server ejected from the arena. This incident shows O’Neal’s response to the lawsuit and his desire to distance himself from the trial. However, it remains to be seen how O’Neal and his legal team will address the allegations against him in the FTX lawsuit.

Astral’s NFT lawsuit, allegations and details

In addition to the FTX class action lawsuit, O’Neal also faces a separate lawsuit related to his alleged involvement in Astral’s NFT project. The lawsuit alleges that O’Neal founded and promoted this Solana-based NFT project, which the plaintiffs claim constituted “unregistered securities.” The complaint argues that the NFTs sold by Astrals were actually investment contracts that fall under the Howey test. The plaintiffs allege that they suffered investment losses as a result of O’Neal’s actions and seek damages accordingly.

The lawsuit raises questions about O’Neal’s current involvement with Astral’s NFT project, noting that he has not made any recent contributions to the project’s Discord channel since January. This detail adds to the complexity of the case, as it seeks to establish O’Neal’s level of responsibility and influence over the alleged sale of unregistered securities. O’Neal’s legal team will likely have to address these allegations and present a clear defense to the allegations.

Implications and potential outcomes:

If the allegations against Shaquille O’Neal are proven true in one of the lawsuits, he could face significant legal consequences. In the FTX class action, O’Neal could be held liable for his endorsement’s potential impact on investors who suffered financial losses due to the exchange’s bankruptcy. In Astral’s NFT lawsuit, O’Neal’s alleged promotion of unregistered securities could result in additional legal penalties and financial liabilities if the court rules in favor of the plaintiffs.

Regardless of the legal outcomes, these lawsuits have the potential to damage Shaquille O’Neal’s reputation. As a former basketball star turned media personality and business mogul, O’Neal’s public image could be tarnished by allegations of backing a bankrupt stock exchange and promoting unregistered securities. How O’Neal handles these legal challenges and addresses the claims made against him will play a crucial role in determining the impact on his reputation.

Conclusion

Shaquille O’Neal’s involvement in both the FTX and Astral’s NFT lawsuits has thrust him into the legal spotlight. The class actions raise significant allegations regarding O’Neal’s endorsement activities and his alleged role in promoting investments that may have violated securities regulations. As the trial unfolds, O’Neal will need to mount a strong defense to protect his reputation and address the potential ramifications of the lawsuits.

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