Galaxy Digital has reached a $200 million settlement with the New York Attorney General's Office over Terra (LUNA) claims, Axios reports.
Mike Novogratz’s Galaxy Digital company has agreed to pay $200 million in settlement with the New York attorney general over allegations that it promoted and sold millions of tokens at a profit prior to LUNA’s collapse.
The $200 million deal will be paid over three years, with the first $40 million to be paid within two weeks.
The New York Attorney General's Office accused Galaxy Digital of violating the Martin Act and the Executive Order by promoting LUNA without disclosing its financial interests.
Galaxy Digital and its CEO Mike Novogratz allegedly played a role in inflating the price of LUNA by selling it. According to the filing, Galaxy Digital earned over $100 million from the sales when it purchased 18.5 million LUNA tokens at a 30% discount. However, it did not disclose these transactions when promoting LUNA.
Mike Novogratz is also one of LUNA's most important supporters, and Novogratz promised on social media that he would get a tattoo if the price of LUNA exceeded $100. When this happened, he also shared his LUNA tattoo.
*This is not investment advice.
