cryptonews.net
The New York Attorney General’s Office (NYAG) recently announced a $200 million settlement with Galaxy Digital, a prominent crypto investment firm founded by Michael Novogratz. The settlement alleges that the firm promoted LUNA without disclosing its financial interest in the asset, thereby violating the Martin Act and the Executive Law.
Galaxy Digital is accused of purchasing LUNA in 2020, promoting it, and then selling its holdings without disclosing its intent to sell, thereby failing to disclose its financial interest in the asset. The office noted in a statement that the crypto firm sold “millions of tokens into the market at many multiples of its initial cost without disclosing that it was selling.”
Galaxy Digital neither admitted nor denied the allegations. However, the NYAG said that Michael Novogratz was one of LUNA’s most vocal supporters. The statement said that Novogratz once acknowledged the platform’s critical role in driving interest in LUNA “through its marketing efforts.” In addition to clearly expressing confidence in the lesser-known token, Galaxy Digital has participated in huge sales multiple times.
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