Galaxy Digital to Pay $200 Million in LUNA Settlement

Galaxy Digital has agreed to pay $200 million to settle claims by the New York Attorney General’s office (NYAG).

The firm was accused of promoting the cryptocurrency LUNA and selling millions of tokens at a profit before its collapse.

According to NYAG, since 2020, Galaxy Digital purchased LUNA at a discounted rate while simultaneously promoting it. The company allegedly concealed its intentions to sell the tokens, violating New York laws, including the Martin Act.

The case materials state that Galaxy Digital’s founder, Michael Novogratz, actively supported LUNA, and the company boosted the token’s popularity through marketing. While he publicly expressed confidence in the project, Galaxy sold millions of tokens at prices significantly higher than their purchase cost.

Prosecutors claim Galaxy acquired 18.5 million LUNA tokens at a discount and by March 2022 had sold most of them, earning $100 million. By the time LUNA’s value plummeted in May 2022, the firm had nearly exited the asset.

The regulator asserts that Galaxy’s actions helped raise the token’s price from $0.31 in October 2020 to $119.18 in April 2022.

Under the settlement terms, Galaxy Digital will pay $200 million over three years. The first $40 million must be paid within the next two weeks. The firm will also implement measures to prevent conflicts of interest, including legal reviews of token investments and promotions.

Back in March 20, 2025, MoonPay secured a renewable $200 million credit line from Galaxy for emergency liquidity requests.