Galaxy Digital has reached a $200 million settlement with the New York Attorney General's Office over allegations related to Terra (LUNA).
Background of the Settlement
According to Axios, Mike Novogratz's Galaxy Digital company agreed to a $200 million settlement with the New York Attorney General. The deal will be paid over three years, with the first $40 million due within two weeks.
Allegations Against Galaxy Digital
The New York Attorney General's Office accused Galaxy Digital of violating the Martin Act and Executive Order by promoting LUNA without disclosing its financial interests. The filing alleges that Galaxy Digital played a role in inflating LUNA's price by selling it. The company earned over $100 million from the sales while purchasing 18.5 million LUNA tokens at a 30% discount, and these transactions were not disclosed when promoting LUNA.
Role of Mike Novogratz in Promoting LUNA
Mike Novogratz, CEO of Galaxy Digital, was one of LUNA's key supporters. Novogratz promised to get a tattoo if LUNA's price exceeded $100. When it did, he also shared his LUNA tattoo on social media.
The settlement with the New York Attorney General marks a significant moment for Galaxy Digital and Mike Novogratz, highlighting the seriousness of the allegations and the company's willingness to address them.
