NYAG reaches $200m settlement with Novogratz's crypto bank Galaxy Digital over LUNA sales
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Galaxy Digital, led by Michael Novogratz, has agreed to a $200 million settlement with the New York Attorney General's office over allegations of promoting LUNA cryptocurrency while secretly selling millions of tokens at a profit. The firm reportedly bought 18.5 million LUNA tokens at a discount, selling most by March 2022 and making over $100 million before the token's collapse in May 2022.
March 28, 2025 | 7:45 am
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The settlement highlights regulatory concerns around cryptocurrency token promotions and potential market manipulation, which could impact investor confidence in algorithmic stablecoins.
The settlement directly references LUNA's market dynamics, revealing how promotional activities and undisclosed token sales can artificially inflate prices before a dramatic collapse.
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