How Galaxy Digital’s $200 Million Scandal Rocked the Crypto World 🚀💥

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In a move that could only be described as “boldly fraudulent,” Galaxy Digital has agreed to a $200 million settlement for allegedly misrepresenting its exit strategy while cheerleading TerraLuna (LUNA) as the next big thing. 🎭 Novogratz, the mastermind behind Galaxy, was accused of peddling LUNA to the masses while quietly cashing out millions of tokens at a tidy profit. Because, of course, why not?

The settlement alleges that Galaxy’s shenanigans helped LUNA’s price skyrocket from a measly $0.31 in October 2020 to a jaw-dropping $119.18 in April 2022. All this without disclosing their little fire sale, which, as it turns out, is a big no-no under New York’s Martin Act and Executive Act. Who knew? 🤷‍♂️

The Great LUNA and TerraUSD Implosion

LUNA and its sibling TerraUSD (UST) were the darlings of the Terra ecosystem—until they weren’t. In May 2022, the whole house of cards came tumbling down, wiping out $40 billion and sending crypto firms like BlockFi and Three Arrows Capital into bankruptcy. The settlement hints that Galaxy’s secret LUNA liquidation might have been the final nail in the coffin. Oops. 💀

Legal Drama and the Never-Ending Saga

While Galaxy Digital neither admitted nor denied the allegations (classic), the settlement is a significant milestone in the post-Terra crash fallout. Meanwhile, Do Kwon, Terra’s co-founder, is cooling his heels in Montenegro after being arrested for travel paper forgery. He’s set to face trial in the U.S. in January 2026. Terraform Labs, the brains behind Terra, has agreed to a $4.47 billion settlement with the SEC, promising to disband and liquidate assets. Because nothing says “accountability” like a multi-billion-dollar settlement. 🏦

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2025-03-28 23:15