All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, do your own research before making any kind of investment.
Shaq FTX Lawsuit Served During NBA Game
Shaquille O’Neal, the basketball legend, unexpectedly faced legal action in the crypto and NFT space while broadcasting an NBA game in Miami. The lawsuits are related to FTX and his NFT project. Here is everything you need to know.
Shaq served with FTX lawsuit and NFT project
Basketball legend Shaquille O’Neal has faced legal action within the crypto and NFT world. The situation arose while he was broadcasting an NBA game in Miami. Two separate lawsuits were served against Shaq, one related to the FTX bankruptcy and another about his NFT project, Astrals. The unexpected delivery of legal papers took place at the FTX Arena in Miami. Thus adding a dramatic twist to an already interesting story.
The first lawsuit targets celebrities who supported the now-bankrupt cryptocurrency exchange FTX. Other defendants are notable figures such as former NFL star Tom Brady and TV star Larry David. On the other hand, the other complaint focuses on Shaq and his NFT project, Astrals, which launched in March. The lawsuit alleges that the NFTs offered by Astrals were unregistered securities, alleging that the former NBA player made promises related to these digital assets.
Both lawsuits against Shaquille O’Neal are being led by The Moskowitz Law Firm and Boies Schiller Flexner LLP. Following allegations of evasion of service and obstruction of justice, attorney Adam Moskowitz stated that the trials can now proceed without further delay. He expressed relief that the focus can shift to the case’s merits rather than the distractions caused by Shaq’s actions.
Last month, Moskowitz’s law firm claimed to have successfully served Shaq regarding the FTX lawsuit. However, Shaq’s legal team disputes this, arguing that documents were thrown at his car rather than delivered in person. The controversy surrounding the service of legal papers has only added to the uncertain nature of the lawsuits.
The drama continues
The complaint against Shaquille O’Neal for his involvement with Astrals spans 54 pages and includes six claims. The laws allegedly violated are Florida’s Deceptive and Unfair Trade Practices Act and the Virginia Consumer Protection Act. At the heart of the complaint is that Astral’s NFTs could potentially be classified as unregistered securities under the US Securities and Exchange Commission’s Howey Test, a framework used to determine securities status since 1946.
The complaint argues that the value of Astrals holders is tied to Shaq’s celebrity status and promotional efforts. It presents evidence of Shaq’s involvement in the digital asset industry, documenting his entry into the Web3 space and how Astrals allegedly misled investors.
The lawsuit claims Astrals was Shaq’s brainchild. In addition, the appointment of his son, Myles O’Neal, as the project’s head of investor relations suggests that the team saw it as a marketing opportunity. The complaint examines the various ways Shaq promoted the project, including social media posts and appearances as DJ Diesel during musical performances. It also claims that Shaq distanced himself from the project’s community after the collapse of FTX.
The lawsuit highlights Jan. 2 as the last instance of Shaq’s involvement with the Astrals’ community. It cites a GIF he allegedly posted on the project’s Discord server from the movie The Wolf of Wall Street. As we continue to “be” this bear market, there is more drama unfolding in the room, so grab your popcorn and enjoy.
