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 In recent legal developments, China has updated its Anti-Money Laundering (AML) laws to include virtual asset transactions, marking a significant step in its regulatory approach to digital currencies. Meanwhile, in the United States, former NBA star Shaquille O’Neal is set to defend himself against claims in a class-action lawsuit involving the promotion of non-fungible tokens (NFTs).&nbsp;
 <h2 id="shaquille-o-neal-to-defend-claims-in-astral-nft-class-action-lawsuit-legal-battle-intensifies">Shaquille O’Neal to Defend Claims in Astral NFT Class-Action Lawsuit: Legal Battle Intensifies</h2>
 Former NBA superstar <a href="https://coinpaper.com/1365/shaq-finally-served-in-ftx-case-after-months-of-hiding-from-lawyers" target="_self" rel="noopener noreferrer nofollow">Shaquille O’Neal</a> finds himself in the legal spotlight once again, this time over his involvement in promoting the Astral non-fungible token (NFT) project. A class-action lawsuit, which has been ongoing for over a year, names O’Neal as a defendant and accuses him of promoting unregistered securities. Recent developments in the case have seen a Miami federal court judge rule that O’Neal must defend some of the claims brought against him, adding a new layer of complexity to the ongoing legal saga.
 The lawsuit, filed in May 2023, revolves around the Astral NFT project, a Solana-based initiative that includes 10,000 NFTs, a metaverse known as Astralworld, and a decentralized autonomous organization (DAO) with a governance token called Galaxy. The plaintiffs in the case argue that these NFTs and the associated Galaxy tokens should be classified as securities under U.S. federal law, making O’Neal’s promotion of them a potential violation of securities <a href="https://coinpaper.com/5137/global-crypto-regulations" target="_self" rel="noopener noreferrer nofollow">regulations</a>.
 Judge Federico Moreno, who is overseeing the case, recently <a href="https://www.courtlistener.com/docket/67416324/91/harper-v-oneal/" target="_self" rel="noopener noreferrer nofollow">issued</a> an order on Aug. 16 addressing O’Neal’s motion to dismiss the case. The judge determined that the plaintiffs had adequately alleged that O’Neal was a “seller” of the Astral NFTs, meaning that the basketball legend will need to defend against these claims in court. However, the judge did dismiss the claim that O’Neal was a “control person” within the Astral project, a small victory for O’Neal’s legal team.
 Central to the lawsuit are allegations that O’Neal used his substantial social media following to promote the Astral NFTs, urging potential investors to “[h]op on the wave before it’s too late.” The plaintiffs claim that O’Neal’s promotion created a false sense of security and urgency among investors, leading many to purchase the NFTs and Galaxy tokens under the belief that the project would achieve significant financial success.
 According to the lawsuit, O’Neal’s promotion included promises that the project’s development would continue until the NFTs reached a floor price of 30 Solana (SOL), equivalent to approximately $90 at the time of the project’s launch in March 2022. However, following the collapse of the cryptocurrency exchange FTX, O’Neal allegedly ceased his involvement with the Astral project, despite previously assuring the community that he was “NOT F***ING LEAVING.” The plaintiffs argue that O’Neal’s departure contributed to a dramatic decline in the value of the Astral NFTs and the Galaxy token, causing significant financial losses for investors.
 <h3 id="legal-defense-and-ongoing-proceedings">Legal Defense and Ongoing Proceedings</h3>
 In response to the lawsuit, O’Neal’s legal team has argued that the case should be dismissed, asserting that O’Neal is neither a “seller” nor a “control person” within the Astral project. Furthermore, they contend that the NFTs and the Galaxy token do not meet the legal definition of securities under U.S. law, a key point of contention in the case.
 Despite these arguments, Judge Moreno’s recent ruling requires O’Neal to respond to the claims by Sep. 12. As the case progresses, it is likely to draw further attention to the legal challenges surrounding the promotion of NFTs and other digital assets, particularly by high-profile celebrities.
 O’Neal’s counsel has not yet provided a public comment on the latest developments in the case. The floor price of the Astral NFT collection, which once promised substantial returns, now sits at just 0.106 SOL, approximately $15.50, according to the NFT marketplace <a href="https://magiceden.io/marketplace/astrals" target="_self" rel="noopener noreferrer nofollow">Magic Eden</a>.
 The outcome of this lawsuit could have far-reaching implications for the NFT market, particularly in how digital assets are promoted and regulated. If the court ultimately determines that the Astral NFTs and Galaxy tokens are indeed securities, it could set a precedent that would subject similar projects to stricter regulatory scrutiny.
 Moreover, the case shines the spotlight on the risks associated with celebrity endorsements of digital assets. As NFTs and cryptocurrencies continue to gain mainstream attention, the involvement of public figures like Shaquille O’Neal raises important questions about responsibility, accountability, and the potential impact on investors.
 As Shaquille O’Neal prepares to defend against the allegations in court, the Astral NFT lawsuit serves as a cautionary tale for both investors and celebrities. The case highlights the need for greater clarity and regulation in the rapidly evolving world of digital assets, where the lines between innovation and legal compliance are often blurred. With the next court deadline fast approaching, all eyes will be on how this legal battle unfolds and what it could mean for the future of the <a href="https://coinpaper.com/5072/can-nf-ts-boom-again-" target="_self" rel="noopener noreferrer nofollow">NFT market</a>.
 <h2 id="china-s-supreme-court-updates-anti-money-laundering-laws-to-recognize-virtual-asset-transactions-amid-speculation-of-crypto-unban">China's Supreme Court Updates Anti-Money Laundering Laws to Recognize Virtual Asset Transactions Amid Speculation of Crypto Unban</h2>
 In a major development for China's financial and legal landscape, the country’s Supreme Court and public prosecutor have revised their interpretation of Anti-Money Laundering (AML) laws, now officially recognizing ”virtual asset” transactions as a potential method for money laundering. This update, announced during an Aug. 19 <a href="https://mp.weixin.qq.com/s/lN-caQCInPqlpJrENwJyUg" target="_self" rel="noopener noreferrer nofollow">conference</a>, marks the first major revision to China’s AML laws in nearly two decades, signaling the government's increasing focus on the regulation of digital assets.
 China's current Anti-Money Laundering Law, which was initially adopted on Jan. 1, 2007, has long been a cornerstone of the country's efforts to combat financial crimes. However, the rapid evolution of technology and the rise of digital currencies have necessitated a significant update to the law. The recent revision by the Supreme People's Court and the Supreme People's Procuratorate now includes ”virtual asset” transactions as one of the recognized methods of money laundering.
 This change is a direct response to the growing use of digital transactions for illicit purposes. According to the new interpretation, the transfer and conversion of criminal proceeds through digital transactions will be covered under regulations that prohibit ”covering up and concealing the source and nature of criminal proceeds and their benefits by other means.” The inclusion of virtual assets under this legal framework signals&nbsp; the Chinese government's intent to tighten its grip on the financial sector, particularly in the realm of emerging digital technologies.
 The updated AML laws also introduce stricter penalties for individuals found guilty of using virtual assets for money laundering. Offenders could face fines ranging from a minimum of $1,400 (10,000 Chinese yuan) to as much as $28,000 (200,000 Chinese yuan) for more severe offenses. In addition to financial penalties, those convicted could also face jail terms ranging from five to ten years, depending on the severity of the crime.
 Moreover, the revision includes clearer guidelines on what constitutes ”serious circumstances” in money laundering cases. This includes refusal to cooperate with authorities or laundering amounts exceeding $700,000 (5 million Chinese yuan). These measures are designed to provide law enforcement agencies with more robust tools to combat financial crimes, particularly those involving digital assets.
 The Supreme People’s Procuratorate highlighted the growing concern over money laundering activities in the country, revealing that 2,971 individuals were prosecuted for money laundering in 2023 alone, representing a 20-fold increase since 2019. This statistic shows the urgency with which the Chinese government is addressing the issue.
 The timing of this legal revision has sparked speculation within the cryptocurrency community, particularly on the social media platform X about the possibility of China reversing its longstanding ban on cryptocurrencies. Rumors have been circulating since July, when Galaxy Digital CEO Mike Novogratz suggested in a now-deleted post that China might ”likely unban” Bitcoin by late 2024.
 On Aug. 19, Justin Sun, the founder of Tron and Huobi (HTX), further fueled the speculation by posting a cryptic comment on X, asking what the best meme would be to celebrate China unbanning crypto. These comments have led to a flurry of discussions and debates within the industry, with some optimistic that the Chinese government might be re-evaluating its stance on digital currencies.
 <h3 id="skepticism-and-contradictions-experts-weigh-in">Skepticism and Contradictions: Experts Weigh In</h3>
 Despite the excitement generated by these rumors, several experts remain skeptical about the likelihood of China reversing its crypto ban. In July, Yifan He, CEO of the prominent Chinese blockchain firm Red Date Technology, expressed doubt that China would ever allow its citizens to freely trade Bitcoin using local fiat currency. He pointed out that such a move would be contrary to the government's broader political agenda, which has consistently aimed to maintain strict control over financial transactions within the country.
 Mikko Ohtamaa, co-founder of the algorithmic investment protocol Trading Strategy, echoed this sentiment, arguing that a U-turn on crypto policy would directly conflict with China's existing regulatory framework and political objectives. Since enacting a ban on crypto exchanges in 2017 and a subsequent interdepartmental crackdown on cryptocurrency activities in 2021, China has maintained a cautious and often adversarial approach to the digital currency space.
 In a related development, authorities in Qingdao are currently prosecuting a case involving a money laundering network that allegedly used the stablecoin Tether (USDT) to launder over $1.1 million (8 million yuan) for criminal enterprises. According to a Chinese media report, the syndicate involved three main individuals who recruited friends to use their business licenses and identification documents to open public accounts. These accounts were then used to receive funds from criminals, which were subsequently converted into USDT and transferred back to the criminals. The syndicate reportedly earned commissions for facilitating these transactions. Nine individuals are now facing criminal charges as a result of the investigation.
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Shaquille O'Neal to Defend NFT Promotion Claims in Ongoing Lawsuit

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