Shaquille O’Neal, a well-known basketball player in America, is currently facing a class-action lawsuit for promoting the Solana-based crypto project, Astrals. The lawsuit was filed by Daniel Harper in a Floridan court, claiming that Shaquille promoted the Astrals token through posts and videos on his social media handles.
Astrals is a 3D-modeled NFT collection that was founded by Shaquille O’Neal and his son, Mylers O’Neal. The project is built on the Solana network and aims to onboard users into an ecosystem that offers gaming and metaverse experiences. These services are accessible through the Solana-based NFT marketplace Magic Eden.
The Shaq Signature Pass
To encourage users to engage with Astrals’ native cryptocurrency, the project launched the Shaq Signature Pass, which is an exclusive 50-piece collection of NFTs. These collectibles can only be claimed with the native token.
The Lawsuit and Howey Test
Harper’s lawsuit claims that Astrals tokens are unregistered securities, which means that the assets will be subjected to the Howey test. This is a process used to determine whether a cryptocurrency (or any other type of asset) falls under the category of security or an investment contract.
If the Astrals token passes the Howey test, it will be classified as a security and must be registered with the United States Securities and Exchange Commission (SEC). As a result, the SEC will likely take legal action against Astrals and its executives, demanding a settlement.
This is not the first time that Shaquille O’Neal has found himself in a crypto-related lawsuit. Earlier this month, he was involved in a court case regarding the collapsed crypto exchange FTX. While Shaquille has denied the allegations in both cases, it remains to be seen how the lawsuits will unfold.