Galaxy Digital Holdings from Michael Novoghatz will pay $ 200 million in penalties for the investment company’s role in strengthening the failed Luna Current, as part of a settlement with the public prosecutor in New York.
Galaxy reached an agreement with the state authority on Thursday to resolve civil claims related to some investments, trade and public data that I made regarding a color between the late 2020 and 2022, according to the company said in a profit statement on Friday.
The settlement includes an unbearable cash penalty of $ 200 million, due in installments until 2028. Galaxy noticed a legal ruling of $ 166 million to cover the fine in its full general results on Friday, indicating the deduction effect.
The investment company was accused of violating the rules in enhancing the original without revealing its intention to sell it, according topresentationPublished by the Public Prosecutor in New York. Galaxy said he did not confess or deny that violations were committed as part of the deal.
Galaxy and Novoghatz began promoting the Luna Cryptocurrency in 2020, a symbol whose main goal was to support the value of the sisters’ currency through the algorithm. Both symbols later escalate to zero in mid -2012, erasing more than $ 40 billion in the market value.
“This was not an easy decision and one we looked at it carefully,” Novogratz, founder and CEO of Galaxy, said in a statement to Bloomberg. “Do Kwon and Terraform, creators in Luna, and many other prominent institutional investors. During the past few years, Galaxy has completely cooperated with the organizers – including the public prosecutor in New York.”
Novugratzi promised that he will get a tattoo tattoo if the code price reaches $ 100, which is whatPublish a photoIn early 2022, at the same time, Galaxy was benefiting from the high prices of Luna in hundreds of millions of dollars, the Prosecutor’s Office in New York said. She added that Galaxy sold almost all Luna holdings before the accident.
Luna’s collapse began a series of bombing operations through the encryption industry, causing waves of bankruptcy, unconvincing fraud and a wide scandal. He said in 2023 that the tattoo is now famous for the Novoghatz-wolf-wolf on the moon with the word “color” next to it-it is a “good reminder of anger.”
This settlement comes as many long -term encoding procedures have been dropped or stopped by the American authorities, and seek to re -establish the organizational stadium before developing new rules for the sector. She said in the litigation notifications published on Thursday, that the US Securities and Stock Exchange Committee overthrew lawsuits against Kraken and Conssys.
Galaxy registered a net income for the fourth quarter of 174.5 million dollars, compared to $ 301.5 million a year ago. This included the effect of the settlement.
This story was originally shown on Fortune.com
