Galaxy Digital Settles $200M with NYAG Over LUNA

Galaxy Digital has agreed to a $200 million settlement with the New York Attorney General over its handling of the Terra LUNA cryptocurrency. The settlement resolves allegations that Galaxy engaged in deceptive practices, including promoting LUNA while secretly selling its holdings, violating the Martin Act and New York Executive Law. CEO Michael Novogratz publicly endorsed LUNA, even getting a tattoo to show his support, while the firm profited substantially from undisclosed sales. The agreement aims to prevent future conflicts of interest and highlights the importance of transparency in cryptocurrency promotions. Galaxy initially acquired LUNA at a discount and promoted it to inflate its value, ultimately contributing to a significant market collapse.