Galaxy Digital Resolves New York Investigation with $200M Settlement

2 mins mins

Key Points:

Galaxy Digital settles with NY over Terra-Luna collapse for $200 million.
The settlement reflects the company’s commitment to resolving legal matters.
Galaxy’s 2024 report shows strong financial performance despite the settlement.

Galaxy Digital has agreed to a $200 million settlement with the New York Attorney General’s office over its involvement in the Terra-Luna ecosystem collapse in 2022.

Galaxy Digital’s $200 Million Settlement Agreement Details:
Galaxy Digital reached a settlement with the New York Attorney General’s office concerning its investments and trading activities linked to the Terra-Luna ecosystem collapse in 2022. The agreement requires Galaxy Digital to pay $200 million and take responsibility for its promotional activities involving LUNA tokens.

Terra-Luna Collapse’s Implications and Market Impact:

The settlement marks a significant regulatory move, reflecting ongoing scrutiny on cryptocurrency operations. Despite this, Galaxy Digital’s 2024 financial report shows robust performance, recording a net profit of $174 million in Q4 and a total annual profit, indicating strategic foresight.

Financial markets reacted with cautious optimism. Although Galaxy Digital’s CEO, Mike Novogratz, did not comment publicly, the company’s financial health remains strong, as highlighted in recent investor documents. Regulatory experts point out the settlement aligns with broader industry trends seen across multiple high-profile cases, such as the notable $2 billion settlement with Genesis Global Capital.

“We remain committed to strategic collaboration despite ongoing legal proceedings, which are a separate matter,” said Mike Novogratz, CEO of Galaxy Digital.

Market Data and Future Insights:

Did you know? The Terra-Luna collapse has been part of increasing regulatory enforcement actions, including a notable $2 billion settlement with Genesis Global Capital.

As per CoinMarketCap, Terra (LUNA) is priced at $0.20, with a market cap of $138.5 million. In the past 90 days, the coin’s price declined by 54.32%, reflecting ongoing volatility in the market. The 24-hour trading volume is recorded at $17.2 million, marking a change of 5.72%.

terra-daily-chart — Terra(LUNA), daily chart, screenshot on CoinMarketCap at 12:27 UTC on March 28, 2025. *Source: CoinMarketCap*

Experts from Coincu suggest that while Galaxy Digital’s settlement signals potential regulatory hurdles in the future, the company’s new partnerships and client offerings could sustain its financial recovery, drawing on stable backing and hedge strategies in digital assets.