Anthony Scaramucci, founder of Skybridge Capital, says the Martin Act in New York, an anti-combustion law enacted in 1921, should be abolished.
The Skybridge Capital’s founder’s call for the repeal of the law comes as a result of a $200 million settlement by the New York Attorney General with Galaxy Digital. And it’s all related to the collapsed Luna (Luna) token.
In X’s post, Scaramucci labeled Martin as a “dangerously powerful” law. The Martin Act allows the NYAG to file a lawsuit against a party deemed to have violated its provisions, but according to Scaramucci, the cleaning agencies were able to abuse the AG in terms of investigation and penalty.
Without the need to prove your intention, the act becomes shorter. “Proof of a Low Standard” is what the Skybridge Capital founder says is dangerous. For him, the law “should not exist” and the use of the law to help NYAG reach a $200 million settlement with Galaxy Digital is “pure and simple.”
He added that the case and settlement are in conflict with actions taken by the Securities and Exchange Commission and the Department of Justice.
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“This makes no sense and is in complete conflict with the SEC and DOJ, who have pursued actions against Do Kwon and Terraform,” he posted. “It’s pure and simple because of the obscure but dangerous, powerful New York law known as the Martin Act. The law does not need to prove its intent, and creates evidence of a low standard that can open the door to such abuse. It should not exist.”
In its investigation, NYAG alleges financial misconduct on the part of Galaxy Digital, claiming that Luna’s company’s marketing ultimately harmed the retail business. The collapse of the Crypto project in May 2022 saw over $40 billion worth of air disappear into a thin air.
Scaramucci says Galaxy Digital and its CEO Michael Novogratz have been deceived by bad actors by Terraform Labs and its founder Do Kwon.
“Novograts is a dear friend and one of the smartest investors I know, because I thought everything he said about Luna was true based on the deception committed by the real bad actors here, Do Kwon and the lab of Terraform.”
Despite feelings about Martin’s law, Scaramucci’s comments about Novogratz have been criticized primarily on social media. Many say Galaxy Digital has been “paid” to pump the Luna, and have enjoyed great benefits, as allegedly in the investigation.
read more: Terraform Labs has launched a billing portal to begin reimbursing creditors
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