The crypto funding large Galaxy Digital has settled with the New York State Lawyer Normal for $200 million after going through allegations that it illegally propped up the ill-fated LUNA token.
New York Lawyer Normal Letitia James alleges Terra founder Do Kwon recruited Galaxy Digital to buy LUNA tokens and advocate for his challenge within the West.
James says the funding agency, which didn’t admit or deny the AG’s allegations, purchased 18.5 million Luna from Terraform Labs in October 2020 at $0.22 per token, an almost 30% low cost to the asset’s then-market value of $0.31.
“As Michael Novogratz, Galaxy’s founder and chief government officer, later stated, Galaxy helped ‘kickstart’ curiosity in Luna by means of its advertising efforts. Galaxy started posting about Luna and Terraform on social media in November 2020, and Luna’s value and buying and selling quantity rose. On March twenty sixth, 2021, when Luna was buying and selling round $18 per token, Novogratz posted on social media that he would get a Luna tattoo if Luna’s value reached $100. Luna hit $100.84 on December twenty fourth, 2021, and on January 4th, 2022, Novogratz publicly unveiled his Luna tattoo on social media.
However whereas Novogratz posted photos of his tattoo and expressed his Luna bullishness to the general public, Galaxy bought hundreds of thousands of tokens into the market at many multiples of its preliminary value with out disclosing that it was promoting.”
James notes that Galaxy Digital had nearly fully exited its LUNA place by the point the Terra ecosystem imploded in Could 2022.
Kwon was arrested in Montenegro in 2023 whereas trying to board a flight to Dubai utilizing a pretend Costa Rican passport.
The South Korean software program engineer is going through fraud costs in each america and his native nation, however Montenegrin authorities determined to extradite him to the US in December.
Kwon faces a most penalty of 130 years in jail, and his trial is at present scheduled for January 2026.
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