NYAG reaches a $ 200 million settlement with Galaxy Digital on Luna

The New York Prosecutor has reached a $ 200 million settlement with Galaxy Digital in response to the collapse of Luna in 2022. The $ 200 million will be paid over three years, starting at $ 40 million in two weeks. This is followed by a similar settlement by the Supreme Education Council, which reached an agreement with a company affiliated to the Jump Crypto company for $ 123 million related to Luna.

The role of Galaxy Digital in Terra Luna Matter

The repercussions of Terra Luna from this failure led to a settlement of $ 200 million, especially after allegations that the Galaxy Digital violated Martin and the executive law through the promotion of Luna without revealing its interest in the original. Terraform Labs, Luna and UST and Stablecoin are designed to keep it connected to US dollars through a automatic purchase and sale mechanism linked to Luna. Rose $ Luna during the year 2021, and Michael Novogratz, CEO of Galaxy Digital, was one of the most defenders of Luna.

The settlement of $ 200 million determines that, while Novoghatz publicly expressed his upward views about Luna, until he went to the point of obtaining a tattoo after the currency price exceeded $ 100, Galaxy Digital sold millions of Luna codes at great profits, without revealing these sales to the public. It is claimed that the company sold these symbols at a time when it was actively promoting the original.

The settlement claims that Terraform Labs sought to support Galaxy to get an increase in the American market. Terraform Labs also got a deal with Galaxy to buy 18.5 million Luna icons with a 30 % discount, which was later sold throughout the year, which achieved more than $ 100 million of profits. By March 2022, Galaxy came out of its entire location and exceeded hundreds of millions of dollars, with the promotion of $ Luna.

Although Galaxy did not recognize accusations, the settlement includes various reforms and includes tougher policies to prevent conflicts of interests and legal reviews of encryption deals.

Also read: NFLPA, DraftKings reach NFT Settlement Deal, suspended terms

Written by Rito Lavania

Ritu Lavania is a multi -use Web3 content creator with more than three years experience in the encryption space. It is part of the team in Cryptonewsz, where you write insightful and attractive content. She also contributed to Thecryptotimes and Coin Edition, where her work was well received by the encryption community. Maher in research, creative writing, senior economic officials, and job cooperation, creating content specifically designed for a varied audience. Population of education, devotes time to teaching children and expressing themselves through poetry. It always yearns for learning, constantly exploring new trends in Blockchain origin and digital assets. It strongly believes in telling stories to make complex encryption themes easier and attractive to readers all over the world.