Galaxy Digital has agreed to a $200 million settlement with New York authorities over accusations of LUNA token manipulation, underscoring regulatory challenges in the cryptocurrency industry.
Settlement Details
Galaxy Digital agreed to pay $200 million following allegations of manipulating the LUNA token. The settlement with New York authorities reflects ongoing scrutiny in the crypto industry. The charges claim Galaxy Digital was involved in price manipulation of LUNA from 2022. The company has neither admitted nor denied the accusations but has opted for a settlement instead of a legal showdown.
Market Reaction to LUNA
According to CoinMarketCap, Terra's LUNA is trading at $0.19 with a market cap of $137,911,898. The token has seen a 24-hour volume of $16,828,400, marking a 0.49% change. LUNA's price dropped 8.10% over the past day. The settlement could serve as a precedent for future regulatory actions, with market participants closely watching for any technological impacts on Terra's ecosystem.
Future Regulatory Prospects
Past regulatory actions have led to substantial corrections in token valuations. The case recalls [similar settlements](https://cases.stretto.com/public/x191/11749/PLEADINGS/1174910112380000000031.pdf) emphasizing transparency in cryptocurrency trades. Experts noted the possibility of a domino effect on regulatory practices globally.
Experts predict that such enforcement actions will intensify compliance measures within the industry, impact strategic business planning for crypto firms, and potentially lead to global regulatory changes.
