Web3 rights protection knows no borders, O'Neill faces dual litigation over cryptocurrency and NFT

Tech 2023-05-25 18:10:03 Source: Network

Source: A Brief History of the MetaverseAuthor | Funder of the Brief History of the MetaverseIntroduction to the MetaverseRecently, Shaquille O'Neal, a former NBA player, faced two class actions for his actions in the Web3 field, involving his cooperation with the FTX Exchange and his own Astrals project. This article will provide a detailed introduction to the background, reasons, and progress of these two lawsuits, as well as their impact on O'Neill and other celebrities who want to enter the cryptocurrency and NFT fields

Source: A Brief History of the Metaverse

Author | Funder of the Brief History of the Metaverse

Introduction to the MetaverseRecently, Shaquille O'Neal, a former NBA player, faced two class actions for his actions in the Web3 field, involving his cooperation with the FTX Exchange and his own Astrals project. This article will provide a detailed introduction to the background, reasons, and progress of these two lawsuits, as well as their impact on O'Neill and other celebrities who want to enter the cryptocurrency and NFT fields.

With the bursting of the cryptocurrency and NFT foam in the Web3 field worldwide, many high-risk projects have exploded.

There are many leaders in the Web3 industry and celebrities who bring goods to cryptocurrency projects, who are deeply embroiled in the turmoil of rights protection and litigation, and even face imprisonment.

Shaquille O'Neal, a former NBA star, is one of them, which involves his cooperation with FTX Exchange and his own Astrals project.

FTX announced bankruptcy in November 2022, sparking investor anger and litigation.

It is reported that FTX used some celebrity endorsers to attract users before bankruptcy, including O'Neill. O'Neill once created a "ShaqCoin" image for FTX in some advertisements, and claimed that he was the "chief creative officer" of FTX.

However, after FTX declared bankruptcy, O'Neill attempted to draw a line with the company, stating that he was only a "paid spokesperson" and did not participate in FTX's operations or decision-making.

However, this did not satisfy investors as they filed a class action lawsuit against O'Neill and other celebrity spokespersons in the United States District Court for the Southern District of Florida, accusing them of violating securities and consumer protection laws, misleading the public, and profiting from them.

The case is currently ongoing, but O'Neill's lawyer has refuted the investors, questioning whether they have legal claims and whether they can prove that O'Neill's advertising caused them losses.

In addition to the FTX lawsuit, O'Neill was also sued by another investor, Daniel Harper, for his own Astrals project.

The Astrals project is a virtual world based on Solana blockchain, where users can create and customize their avatars by purchasing and trading NFTs, and socialize with other users. O'Neill launched this project in March 2022 and invited his music agent Brian Bayati as CEO, while O'Neill's son Myles O'Neal served as the head of investor relations.

O'Neill had already accumulated a certain reputation in the Ethereum ecosystem before launching the Astrals project. He had previously released his own NFT series and participated in some other projects.

After launching the Astrals project, O'Neill also promoted it through various means, including posting videos and tweets on social media, interacting with fans on Discord channels, displaying Astrals avatars on TV shows, and so on.

O'Neill also released a series of NFTs called "ShaqSignaturePass", claiming that this is a "limited and unique" NFT that can only be obtained by participating in the community or bidding for Astrals tokens, and can be used to unlock special content of O'Neill's signature.

However, in Harper's view, O'Neill did not truthfully reveal the essence and risks of the Astrals project to the public. Harper filed a lawsuit in the United States District Court for the Southern District of Florida on Tuesday, stating that AstralsNFT constituted securities that should have been registered before issuance and sale, but O'Neill did not comply with relevant legal requirements.

Harper also accused O'Neill of using his influence in the sports and entertainment industries to attract investors, and promised that the Astrals project would bring high returns and value added. However, this is not the case. Harper claimed to have purchased Astrals tokens and NFTs worth approximately $5000 and soon discovered that their value had sharply declined and could not be sold or exchanged.

Harper also questioned whether O'Neill really cares about the Astrals project, as to his knowledge, O'Neill has not spoken on the Discord channel since January 2023 and has not updated his social media account about the Astrals project. Harper believes that this is a deliberate deception aimed at convincing investors that O'Neill still supports and participates in the Astrals project.

Harper filed six claims in the lawsuit, including violations of federal securities laws, Florida fraud and unfair dealing laws, Virginia consumer protection laws, and other related laws, and demanded compensation, punitive damages, and legal fees.

Harper also requested the court to provide injunctive relief to Astrals NFT and ordered O'Neill to stop selling, transferring, or using any tokens or NFTs related to the Astrals project.

At present, O'Neill has not provided a formal response to this lawsuit. However, on Tuesday night, during the NBA game live broadcast in Miami, he was served with this lawsuit.

It is reported that the delivery personnel have attempted multiple times to submit the complaint to O'Neill himself, but have all been refused or evaded. Finally, shortly before the start of the competitionKaseya Center in Miami (formerly known as FTX Arena)Outside the stadium, the delivery personnel successfully handed over the complaint to O'Neill and filmed a video as evidence.

These two lawsuits are undoubtedly a heavy blow for O'Neill and also serve as a wake-up call for other celebrities who want to venture into the cryptocurrency and NFT fields.

Although Web3 is a new thing, it is not an illegal place. When participating in it, one must comply with relevant legal regulations and be responsible for the commitments made.

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