Galaxy Digital has settled with the New York Attorney General over allegations of financial interest concealment during the aggressive promotion of LUNA.
Hidden Gains and Undisclosed Incentives
The Attorney General's office alleges that Galaxy Digital purchased 18.5 million LUNA tokens at favorable prices in 2020 and sold them in phases, generating over $100 million in profit without public disclosure of their positions.
Regulators Intensify Focus on Market Manipulation
The investigation highlighted transparency issues in the crypto industry, especially after LUNA's price collapse. Experts emphasize the importance of market integrity during volatile crypto asset promotions. Galaxy Digital's founder, Michael Novogratz, underscored the significance of evolving regulatory frameworks in the U.S.
LUNA Struggles to Recover
Despite recent regulatory interest, the LUNA token has dropped 7% in the last 24 hours. Investors remain cautious, and companies must adapt to new transparency requirements.
The Galaxy Digital case serves as a reminder for the industry about the importance of adherence to disclosure rules and accountability in high-stakes crypto operations.
