The New York Attorney General’s Office (NYAG) recently announced a $200 million settlement with Galaxy Digital, a well-known crypto investment company founded by Michael Novo Gratz. The settlement alleges that the company promoted Luna without disclosing its financial benefits on its assets, thereby violating Martin and Enforcement Acts.
Galaxy Digital has been accused of buying Luna in 2020, promoting it, selling its holdings without disclosing its intention to sell, and failing to disclose its financial benefits to its assets. The crypto company “sold millions of tokens to the market at many multiples of the initial cost without revealing that it was on sale,” the firm said in a statement.
Galaxy Digital did not accept or deny the allegations. However, NYAG said Michael Novogratz was one of Luna’s most vocal supporters. Novograts once recognized the platform’s important role in Luna’s interest “through marketing efforts,” according to the statement. In addition to clearly expressing confidence in lesser known tokens, Galaxy Digital has participated in multiple times in a huge range of sales.
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