Basketball legend Shaquille O’Neal has received a partial victory in his ongoing legal battle over the Astral NFT project. A Florida court dismissed allegations that he had a broader control over the project but confirmed his involvement as a 'seller'.
Introduction
The lawsuit against the Astral NFT project began in May 2023. Investors alleged that the project sold unregistered securities and that O’Neal misled them about his role in the venture.
Court Decision
The court's decision is mixed for O’Neal. On one hand, he successfully defended himself against claims that he was a 'control person' in the Astrals project. This means he cannot be held liable for the project's alleged securities violations. However, the court found that he played a role as a 'seller' by promoting the project to his followers and encouraging them to invest.
Next Steps
The court has not yet ruled on whether Astrals NFTs and Galaxy tokens are considered securities. If they are found to be securities, O’Neal could face legal consequences for his role in promoting them. The case continues, and O’Neal and the Astral project are required to respond to the remaining allegations by September 12, 2024.
The outcome of the case could have a significant impact on the legal landscape surrounding celebrity endorsements in the cryptocurrency space.
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