The post Galaxy Digital Reaches $200M Settlement in LUNA Case appeared on BitcoinEthereumNews.com.

Story Highlights Galaxy Digital settles LUNA case with $200M agreement. Novogratz promoted LUNA while secretly selling millions. New York AG accused Galaxy of misleading investors. Galaxy Digital has agreed to pay a $200 million settlement to the New York Attorney General’s Office. The case involves the company promoting the cryptocurrency LUNA while secretly selling its holdings. The company generated significant profits while keeping information about its sales from public knowledge. Galaxy Digital Faces Legal Action Over Undisclosed LUNA Sales LUNA operated as a cryptocurrency that represented TerraUSD (UST) stablecoin through a stable mechanism. The UST stablecoin emerged from Terraform Labs under a mechanism that used LUNA to maintain its value stability. The crypto market boom of 2021 brought quick price growth to LUNA. The crypto supporters who gave themselves the nickname “lunatics” maintained complete confidence in LUNA’s success. As CEO of Galaxy Digital, Michael Novogratz actively supported LUNA by promoting it to his clients. During his support for LUNA, he vowed to get a tattoo when LUNA surpassed a price of $100. After this achievement, he showcased his new tattoo through social media which featured a wolf under moonlight. During LUNA promotion activities, Novogratz was engaged in, Galaxy Digital conducted secret transactions which involved selling millions of tokens. The investors remained unaware of these sales until the issue came to light as a major problem. During the investigation, the New York Attorney General declared that the company had deceived its investors. The settlement revealed that Galaxy Digital simultaneously promoted LUNA tokens while conducting substantial token sales. The company participated in LUNA price growth alongside securing major financial earnings from the operation. Sales conducted by this entity remained undisclosed to the general public. The Attorney General initiated legal proceedings because of the insufficient disclosure measures adopted by the company. The investigation…

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Filed under: News - @ March 28, 2025 2:21 pm