The recent legal actions by the New York State Attorney General against Galaxy Digital have drawn criticism from SkyBridge Capital and its founder Anthony Scaramucci.
Scaramucci's Views on the Martin Act
Anthony Scaramucci describes the actions against Galaxy Digital as disproportionate and an abuse of the Martin Act. He believes the law is dangerous in its broadness and does not require intent proof, which may lead to abuses.
Details of the Legal Case Against Galaxy Digital
According to the NAYG indictment, Galaxy Digital violated the Martin Act by promoting Terra (LUNA) without following disclosure rules. The company agreed to a $200 million settlement. Galaxy Digital allegedly purchased a significant amount of LUNA tokens at a discount and sold them without disclosing necessary information.
Crypto Community's Reaction
Other prominent figures in the crypto community, such as MoonPay's president Keith Grossman and investor Anthony Pompliano, also shared their views on the case. Grossman admitted he had to consult AI to understand the Martin Act, while Pompliano expressed support for Michael Novogratz, Galaxy's CEO.
The situation surrounding Galaxy Digital and Terra highlights the challenges faced by the crypto industry in regulation and enforcement. Experts' reactions emphasize the need for clear and fair rules.
