The NBA legend Shaquille O’Nealbetter known as Shaqhas agreed to an $11 million settlement in a class-action lawsuit related to its promotion of the Astrals non-fungible token (NFT) project.
What happened: After a year of legal battle, O’Neal agreed to pay this compensation to have the lawsuit dismissed, reported The Block mardi.
The centerpiece of the chase is a collection of 10,000 3D avatar NFTs based on Solana (CRYPTO: SOL) and a decentralized autonomous organization intended to incubate innovative projects.
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Why it matters : The suit alleged that O’Neal, who was the face of Astrals, used his celebrity influence to encourage investors to purchase the NFTs. The suit also claimed that O’Neal abandoned the project after the collapse of the cryptocurrency exchange FTXcausing a significant drop in the value of NFTs.
The plaintiffs claim O’Neal was aware of potential regulatory issues surrounding the sale of unregistered securities but still promoted them to expand its cryptocurrency activities.
Earlier in August, the United States District Court for the Southern District of Florida, Miami Division, rejected the request that O’Neal was a “controlling actor,” but maintained the allegation that Astrals was selling “unregistered securities.”
Price movement : The base price of the Astrals NFT jumped 115% in the last 24 hours to 0.153 SOL, or $36.39 at current prices, according to NFT marketplace Magic Eden.
The NFT market saw an 85% jump in sales volume for the week ending November 17, according to NFT market tracking platform CryptoSlam, sales volume coinciding with gains in Bitcoin (CRYPTO: BTC) and the broader cryptocurrency market.
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