SkyBridge Capital founder Anthony Scaramucci has called for the repeal of the Martin Act following a significant settlement with Galaxy Digital.
Context of the Dispute
The $200 million settlement between the New York Attorney General and Galaxy Digital is linked to the collapse of the LUNA token. The Attorney General accused Galaxy Digital of violating the anti-fraud law enacted in 1921.
Criticism of the Martin Act
Scaramucci argues that the Martin Act grants dangerously broad powers to the New York Attorney General, including potential misuse. He insists that the lack of intent requirement and low proof standard make the law vulnerable to abuse and calls for its abolition.
Support and Criticism
Scaramucci claims that Galaxy Digital and its CEO Michael Novogratz were deceived by Terraform Labs and its founder Do Kwon. However, his remarks have faced criticism, with many stating that Galaxy Digital benefited from promoting LUNA, as alleged in the investigation.
The stance on the Martin Act remains controversial. Despite Scaramucci's criticism, many view the law as still serving a useful role in combating fraud.
