Galaxy Digital has agreed to a settlement with the New York Attorney General's office over its involvement in the Terra-Luna ecosystem collapse in 2022.
Details of the $200 Million Settlement
Galaxy Digital reached a settlement with the New York Attorney General's office concerning its investments and trading activities linked to the Terra-Luna ecosystem collapse in 2022. The agreement requires Galaxy Digital to pay $200 million and take responsibility for its promotional activities involving LUNA tokens.
Implications of the Terra-Luna Collapse and Market Impact
The settlement marks a significant regulatory move, reflecting ongoing scrutiny on cryptocurrency operations. Despite this, Galaxy Digital's 2024 financial report shows robust performance, recording a net profit of $174 million in Q4 and a total annual profit. Financial markets reacted with cautious optimism. Although Galaxy Digital's CEO Mike Novogratz did not comment publicly, the company's financial health remains strong, as highlighted in recent investor documents.
Market Data and Future Insights
The Terra-Luna collapse has been part of increasing regulatory enforcement actions. As per CoinMarketCap, Terra (LUNA) is priced at $0.20, with a market cap of $138.5 million. In the past 90 days, the coin's price declined by 54.32%, reflecting ongoing volatility in the market. The 24-hour trading volume is recorded at $17.2 million, marking a change of 5.72%.
Experts from Coincu suggest that while Galaxy Digital's settlement signals potential regulatory hurdles in the future, the company's new partnerships and client offerings could sustain its financial recovery.
