TL;DR
- Galaxy Digital reached a settlement with the New York Attorney General’s office, paying $200 million for its involvement in the Terra-Luna ecosystem collapse in 2022.
- Despite the settlement, the firm maintains strong financial performance, with a net profit of $174 million in Q4 of 2024.
- The settlement reflects the growing regulatory oversight over the crypto market, with cases like Genesis Global Capital also involving multimillion-dollar agreements.
Galaxy Digital has reached a settlement with the New York Attorney General’s office, agreeing to pay $200 million as a result of its involvement in the Terra-Luna ecosystem collapse in 2022.
This agreement stems from the company’s responsibility for its promotional activities related to LUNA tokens and its participation in the collapse of one of the most influential cryptocurrencies in the market at the time.
The $200 million payment aims to resolve the legal disputes that arose after the Terra-Luna collapse. Furthermore, it highlights the attention regulators are giving to the practices of cryptocurrency companies. Despite this settlement, Galaxy Digital’s financial performance in 2024 remains strong. The company reported a net profit of $174 million in Q4, showing that despite legal complications, it maintains a stable and favorable financial position.
Galaxy Digital Continues to Maintain Strong Financial Performance
This agreement is part of a series of regulatory mechanisms and actions being carried out globally to establish greater clarity and security in the crypto market. Cases like Genesis Global Capital, which also involved a multimillion-dollar settlement, highlight the authorities’ intervention to oversee the sector.
Although Galaxy Digital has not made detailed public statements about the settlement, its CEO, Mike Novogratz, has reaffirmed that the company remains focused on its growth and collaboration strategy despite the legal challenges it faces. Sector experts suggest that while the settlement may pose some regulatory hurdles in the short term, Galaxy Digital’s new partnerships and client offerings could help the company maintain its financial recovery.
From now on, the continued supervision of authorities over the crypto market could influence how companies in the sector deal with regulations as they await a clearer and more convenient framework for all parties involved.
