Galaxy Digital's Michael Novogratz Agrees to $200M Settlement Over LUNA Manipulation Allegations

Galaxy Digital, led by Michael Novogratz, has agreed to a $200 million settlement with the New York Attorney General over allegations of manipulating the price of LUNA, the token associated with the collapsed Terra ecosystem. The settlement addresses Galaxy's promotion of LUNA without disclosing its sales of the token to the public, with payments to be made over a 3-year plan.

The New York Attorney General's office accused Galaxy Digital of misleading public statements and failing to disclose its holdings and sales of LUNA, which led to legal violations under New York laws. Galaxy purchased 18.5 million LUNA tokens at a 30% discount from Terraform Labs in October 2020. The firm, led by co-founder Do Kwon, subsequently promoted the token, contributing to its price increase from $0.31 to $119 by April 2022 before its collapse.

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