{"id":22522,"date":"2025-03-28T18:34:41","date_gmt":"2025-03-28T16:34:41","guid":{"rendered":"https:\/\/forklog.com\/en\/galaxy-digital-to-pay-200-million-in-luna-settlement\/"},"modified":"2025-03-28T18:34:41","modified_gmt":"2025-03-28T16:34:41","slug":"galaxy-digital-to-pay-200-million-in-luna-settlement","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/galaxy-digital-to-pay-200-million-in-luna-settlement\/","title":{"rendered":"Galaxy Digital to Pay $200 Million in LUNA Settlement"},"content":{"rendered":"<p>Galaxy Digital has <a href=\"https:\/\/ag.ny.gov\/sites\/default\/files\/settlements-agreements\/galaxy-digital-holding-ltd-et-al-assurance-of-discontinuance-2025.pdf\">agreed<\/a> to pay $200 million to settle claims by the New York Attorney General&#8217;s office (NYAG).<\/p>\n<p>The firm was accused of promoting the cryptocurrency LUNA and selling millions of tokens at a profit before its collapse.<\/p>\n<p>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.<\/p>\n<p>The case materials state that Galaxy Digital&#8217;s founder, Michael Novogratz, actively supported LUNA, and the company boosted the token&#8217;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.<\/p>\n<p>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&#8217;s value plummeted in May 2022, the firm had nearly exited the asset.<\/p>\n<p>The regulator asserts that Galaxy&#8217;s actions helped raise the token&#8217;s price from $0.31 in October 2020 to $119.18 in April 2022.<\/p>\n<p>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.<\/p>\n<p>Back in March 20, 2025, MoonPay <a href=\"https:\/\/forklog.com\/en\/news\/moonpay-secures-200-million-liquidity-line-from-galaxy\">secured<\/a> a renewable $200 million credit line from Galaxy for emergency liquidity requests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Galaxy Digital has agreed to pay $200 million to settle claims by the New York Attorney General&#8217;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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[770,36,852],"class_list":["post-22522","post","type-post","status-publish","format-standard","hentry","category-news-and-analysis","tag-galaxy-digital","tag-regulation","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"69","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=22522"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22522\/revisions"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=22522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=22522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=22522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}