Galaxy Digital has settled with the New York Attorney General, agreeing to pay $200 million over allegations related to its handling of the LUNA cryptocurrency preceding its 2022 collapse. The settlement outcomes were based on investigations revealing that Galaxy misrepresented information about LUNA while failing to disclose its intent to sell the tokens. CEO Michael Novogratz stated that the agreement would allow Galaxy to refocus on its mission to drive growth in digital assets and AI. The OAG's findings noted that Novogratz promoted LUNA while his firm sold millions of tokens without revealing this sale, resulting in significant financial gain for Galaxy. Specifically, the firm profited over $100 million through LUNA token sales in early January 2022, despite the ongoing decline of LUNA's value. By the time the LUNA token collapsed, Galaxy was left with only a small number of tokens, demonstrating the drastic shift after a peak in valuations. This settlement also mandates Galaxy to implement new policies for public statements regarding cryptocurrencies.

Source đź”—