Shaq’s NFT Case Expands Legal Perils for Celebrity Promoters

Celebrities promoting cryptocurrency and other digital asset projects face potentially significant liability under US securities laws, a recent court ruling against Shaquille O’Neal shows.

His failed bid to exit a suit by token holders highlights the risks in a developing area of technology and law, attorneys say. O’Neal and other celebrities—including Tom Brady, Gisele Bundchen, Steph Curry, Naomi Osaka, Shohei Otani, and Larry David—are also facing a reckoning for similar endorsements in a separate suit over the demise of crypto platform FTX.

“At a minimum, it’s a big warning sign for those considering promoting the projects,” said Oleg Elkhunovich of ...