BitGo CEO Mike Belshe has voiced support for enhanced regulation within the cryptocurrency industry. This comes in light of Galaxy Digital's recent $200 million settlement with the New York Attorney General.
BitGo CEO's Support for Regulation
Mike Belshe asserts that sufficient oversight is the most effective way to address industry problems that might result in overregulation. He criticized Galaxy Digital's tactics of selling tokens immediately after vesting, deeming them unethical. While expressing admiration for Galaxy Digital's CEO Michael Novogratz, Belshe highlighted the unethical nature of the company's actions in light of NYAG policies.
Galaxy Digital's $200M Settlement with NYAG
The NYAG accused Galaxy Digital of advertising assets without disclosing their intent to sell. The company settled civil claims relating to investments and statements about Luna from late 2020 to 2022. Galaxy Digital agreed to pay a $200 million penalty, to be paid in installments until 2028.
Implications for the Cryptocurrency Industry
The penalty against Galaxy Digital resulted from deceptive actions by Luna's founders, Do Kwon and Terraform, who misled investors. The company has cooperated with regulators and resolved the dispute. Novogratz stressed the difficulty of their decision, hoping to improve the industry's reputation.
The push for enhanced regulation in the cryptocurrency industry reflects the need for greater transparency and reliability in the market. The incident involving Galaxy Digital and Luna underscores the importance of ethical business practices.
