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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Neon Machine settled its dispute with former investor 4D Factory, according to Blockworks. The reported terms include 6 million Neon Machine shares retained by 4D, $4.25 million in cash paid over 48 months, and 150 million SHRAP tokens subject to vesting. Neon Machine told Blockworks the settlement had been approved by the court.
What were the reported settlement terms?
Blockworks reported on April 4, 2025, that a February 14 court filing proposed the settlement. According to Blockworks’ account of the filing, after settlement and dismissal of the claims with prejudice, 4D Factory would retain its 6 million Neon Machine common shares. The reported agreement also provided for:
- $4.25 million in cash to 4D, paid over 48 months.
- 150 million SHRAP tokens, subject to a vesting schedule.
Blockworks said it reviewed the filing and confirmed details with 4D’s attorneys. The settlement agreement itself and the court’s approval order were not available for direct review here, so the terms and approval are reported as Blockworks described them, rather than independently confirmed from those documents. [Blockworks]
Was the settlement approved by the court?
Neon Machine told Blockworks: “We can confirm that it has since been approved by the court.” The cited report does not identify an individual speaker, and it does not reproduce the approval order. The statement is the company’s confirmation as reported by Blockworks, not a quotation from the judge.
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Which other Neon Machine disputes are separate cases?
Several matters involving Neon Machine, SHRAP tokens, or related parties can be easy to confuse with the 4D Factory settlement. They involve different parties and claims.
Javarone’s individual SHRAP-token matter
A federal court opinion discusses a separate 2024 bankruptcy settlement under which Neon was to transfer 16 million SHRAP tokens to Cort Javarone individually. That matter is not the reported settlement with 4D Factory. [Federal court opinion]
GPC3 I’s contract dispute with Javarone
The same opinion concerns a later contract dispute between GPC3 I, LLC and Javarone over a $500,000 SHRAP-token purchase agreement. The court transferred that case to the Southern District of Florida. It was not a settlement between Neon Machine and its former investors. [Federal court opinion]
Realm Metaverse’s NFT-purchase claims
A separate case, Realm Metaverse Real Estate Inc. v. Neon Machine, concerns a complaint filed in December 2025 against Neon Machine and Oganesson Factory Limited, followed by amended pleadings and motions to dismiss. The docket page’s latest visible activity is dated April 30, 2026; later developments have not been verified. This case is distinct from the 4D Factory settlement. [Realm Metaverse docket]
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What does the settlement establish?
The reported settlement resolves the dispute between Neon Machine and 4D Factory on the terms described by Blockworks. A settlement is not a court finding that contested allegations were true, and it does not by itself establish liability. The public account of the settlement should not be treated as a ruling on the merits.
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