Galaxy Digital Settles LUNA Promotion Case with NYAG for $200M

Main notes

• Galaxy Digital is scheduled to pay a $ 200 million settlement to NYAG to promote Luna Tokeen.
• The company is accused of misleading investors by publicly destroying a color while selling millions of symbols for profit.
• The settlement, signed on March 24, requires Galaxy to pay the first $ 40 million in two weeks.

Crypto Investment Galaxy Digital Holdings Ltd (Tse: GLXY) has agreed to pay a $ 200 million settlement for the New York Prosecutor’s Office (NYAA) due to the promotion of Luna symbol. Galaxy faces accusations of violating Martin’s law in New York and the executive law by promoting Luna without revealing its property and asset sales.

The deposit claims that although Galaxy Digital has publicly made color, it threw millions of special symbols, as it benefits greatly without informing the public. The Public Prosecutor’s Office claims that this deficiency in transparency has misled investors, which led to great losses when Luna collapsed in May 2022.

According to the hadith Axios reportThe settlement was officially signed on March 24 by the state authorities and representatives of Galaxy Digital. The payment plan of $ 200 million over three years, with the first batch of $ 40 million, is scheduled to be paid within two weeks.

Galaxy also agreed to implement policies aimed at preventing conflict of interest. These measures include strict guidelines on promotional data and more affirming employee investments. In addition, the company must make comprehensive legal reviews for all future symbolic transactions.

Luna crashes

The color of Luna remains one of the most destructive encryption incidents in history. The TERRA ecological system, which consists of the Luna and Stablecoin Terrausd code (UST), is based on a complex installation mechanism.

However, in May 2022, UST lost its connection to US dollars, causing death. UST decreased to $ 0.10, while Luna, whose value was once $ 119.5, has almost no value. More than $ 40 billion has been collapsed in the market value.

The CEO of Galaxy Digital Michael Novoghatz was one of the most popular supporters in Luna. Novogratz even got a wolf tattoo in the moon to celebrate Luna, which reaches $ 100. However, while boasting of his classification on social media, Galaxy spoiled millions of symbols, according to the NYAG report.

NYAG allegations

The settlement is separated that Galaxy concluded a deal with Terraform Labs, Luna Carterie, to buy 18.5 million icons with a 30 % discount on the market price for $ 4 million. These symbols were released in monthly batches for a year. While publicly promoting Luna, Galaxy sold most of its holdings in multiple batches, which won more than $ 100 million.

By March 2022, immediately before the accident, Galaxy filmed almost completely Luna. Even after that, the company continued to promote a color without revealing the dumping of the distinctive symbol, allegedly depositing.

It is worth noting, at the time of writing this report, Galaxy did not recognize or deny these allegations. This issue follows a broader campaign on the Balloon -related misconduct. In late 2024, the US Securities and Stock Exchange Committee (SEC) reached a $ 123 million settlement with Jump Crypto, a market making company, due to similar violations related to Luna.

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