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Galaxy Digital’s $200M Settlement: A Comedy of Errors in Crypto

BBG News

Ah, dear reader, gather ’round as we delve into the delightful farce that is Michael Novogratz’s Galaxy Digital, which has graciously agreed to part with a princely sum of $200 million to appease the ever-watchful New York Attorney General’s (NYAG) office. It appears our gallant firm has been accused of gallivanting about, promoting the infamous LUNA token, all while neglecting to mention its rather dubious financial interests. How quaint! 😏

Let us not forget the tragic tale of Terra’s LUNA token, which, in a spectacular display of financial acrobatics, plummeted to a staggering loss of $40 billion. And now, in a twist worthy of the finest melodrama, Galaxy Digital finds itself forking over $200 million to settle its misadventures with the NYAG. Bravo! 👏

NYAG Settlement: Galaxy Digital To Pay $200M

In a recent turn of events that could only be described as a plot twist, the New York Attorney General’s office has announced a settlement with Galaxy Digital, that illustrious crypto investment firm helmed by the ever-charismatic Michael Novogratz. The charges? Promoting LUNA without the slightest hint of transparency regarding their financial entanglements. How very scandalous! 😲

Specifically, our dear Galaxy Digital is accused of acquiring LUNA in 2020, singing its praises from the rooftops, and then discreetly selling its holdings without so much as a whisper of intent. The NYAG’s filing reveals that the firm sold “millions of tokens into the market at many multiples of its initial cost without disclosing that it was selling.” A masterclass in subtlety, indeed! 🎭

As the NYAG tightens its grip on this investment behemoth, one cannot help but notice the backdrop of the US SEC’s recent regulatory overhaul, which has led to the dismissal of numerous crypto lawsuits. In a delightful twist, the SEC has even dropped its appeal against Ripple in the XRP saga. What a time to be alive! 🥳

Galaxy Digital Pushed LUNA Price, Alleges NYAG

But wait, there’s more! The NYAG has alleged that Galaxy Digital played a rather significant role in inflating the price of the LUNA token. The statement reads, “Ultimately, Galaxy helped a little-known token increase its market price from $0.31 in October 2020 to $119.18 in April 2022, while profiting in the hundreds of millions of dollars.” A veritable fairy tale of riches! 💰

While Galaxy Digital has neither admitted nor denied these allegations, it is worth noting that our dear Michael Novogratz was one of LUNA’s most vocal cheerleaders. The filing even mentions his acknowledgment of the firm’s pivotal role in generating interest in LUNA “through its marketing efforts.” A true champion of the underdog! 🏆

In a rather grandiose proclamation, Novogratz has hailed the recent regulatory shifts in the US as a historic turning point, viewing the acceptance of a Bitcoin reserve as a game-changer. One can only imagine the confetti raining down as he envisions a world where cryptocurrency reigns supreme! 🎉

LUNA Token Crashes To Weekly Lows

In a plot twist that would make even the most seasoned playwright weep, Galaxy Digital reportedly purchased 18.5 million LUNA tokens at a discount, only to sell most of them in batches, raking in over $100 million by March 2022. Alas, the NYAG has revealed this in their latest filing, while the LUNA token has taken a nosedive to a weekly low of $0.196. Oh, the irony! 😂

As of this very moment, LUNA is valued at a mere $0.1972, down by more than 7% in a single day. Over the past week and month, the token has experienced notable dips of 4% and 13%, respectively. Truly, a rollercoaster of emotions! 🎢

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2025-03-28 13:41

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