An Amended Complaint Filed Against Shaquille O’Neal Over Astrals NFT Project
Shaquille O’Neal is facing allegations of violating securities laws in connection to his NFT project Astrals, according to an amended complaint filed in a federal class action lawsuit. The lawsuit claims that O’Neal offered Solana-based assets and an associated token without complying with securities regulations. The lead plaintiffs in the case, represented by The Moskowitz Law Firm, were appointed by a district judge in Florida. Managing Partner Adam Moskowitz stated that this development allows them to represent all investors as class counsel. The amended complaint provides more extensive evidence of O’Neal’s involvement in Astrals, including deleted videos and tweets gathered from archive.org. It alleges that Astrals’ value was primarily linked to O’Neal’s celebrity status. Representatives for O’Neal have not yet commented on the matter.
Allegations and Disappearance from the Astrals Community
The lawsuit further alleges that O’Neal was intimately tied to Astrals and that his disappearance from the community coincided with the collapse of the cryptocurrency exchange FTX, which he had endorsed. The complaint claims that O’Neal’s final post in the Astrals Discord community was a GIF from the movie “The Wolf of Wall Street” with the phrase “I’m not fucking leaving.” However, he has not been seen at Astrals since then. Astrals was a Solana-based NFT project that included metaverse-ready avatars and a play-to-earn role-playing game. The lawsuit also argues that the project’s governance token, $GLXY, is an unregistered security.
Involvement of Venture Capital Firms and Motion to Dismiss
The amended complaint mentions venture capital firms Cypher Capital and MH Ventures, which allegedly traded $GLXY and had partnerships with Astrals. While they are not defendants in the lawsuit, they will be served with third-party subpoenas as the case progresses. O’Neal’s lawyers previously attempted to have the class-action lawsuit dismissed, arguing that the digital assets were intended for gamers, not investors. However, their motion was denied by the district judge overseeing the case. O’Neal has until September 29 to respond to the amended complaint.
Hot Take:
The amended complaint in the class action lawsuit against Shaquille O’Neal sheds light on his alleged violations of securities laws through his NFT project, Astrals. This case highlights the importance of complying with regulations when offering digital assets to the public. It also raises questions about the involvement of celebrities in the crypto space and the potential risks for investors. As the lawsuit progresses, it will be interesting to see how the court addresses the allegations against O’Neal and the impact it may have on the regulation of NFTs and celebrity endorsements in the future.
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