New York Attorney General Reaches $200 Million Settlement with Galaxy Digital Over LUNA-Related Issues

ChainCatcher news, the algorithmic cryptocurrency LUNA caused at least $40 billion in wealth evaporation during the Terra collapse two years ago. Now, Galaxy Digital, a well-known cryptocurrency company, will pay $200 million due to a settlement agreement with the New York Attorney General's Office.

The collapse of LUNA and its supported Terra USD stablecoin was one of the most dramatic events in the 2022 cryptocurrency market crash, only surpassed by the collapse of the FTX exchange. The New York Attorney General's Office released a document outlining the $200 million settlement agreement reached with Galaxy Digital and its affiliated companies. These companies are among the most well-known cryptocurrency investment firms in the United States. The settlement agreement states that Galaxy violated the Martin Act and Administrative Law by promoting the asset without disclosing its interests in the asset.