Galaxy Digital has agreed to pay $200 million to settle claims brought by the New York Attorney General’s Office (NYAG).

The firm was accused of promoting the LUNA cryptocurrency while secretly selling millions of tokens for a profit before its collapse.

According to NYAG, Galaxy Digital began acquiring LUNA at a discount in 2020 while simultaneously marketing it. The company allegedly concealed its intention to sell the tokens, violating New York laws, including the Martin Act.

Case documents indicate that Galaxy Digital founder Michael Novogratz actively supported LUNA, with the firm playing a key role in boosting the token’s popularity through marketing. While publicly expressing confidence in the project, Galaxy was offloading millions of tokens at significantly higher prices than its purchase cost.

Prosecutors stated that Galaxy acquired 18.5 million LUNA tokens at a discount and had sold most of them by March 2022, earning around $100 million. When LUNA’s price crashed in May 2022, the firm had already exited almost entirely.

Regulators claim that Galaxy’s actions helped drive LUNA’s price from $0.31 in October 2020 to $119.18 in April 2022.

Under the settlement terms, Galaxy Digital will pay $200 million over three years, with an initial $40 million due within two weeks. The firm will also implement measures to prevent conflicts of interest, including legal reviews of token investments and marketing activities.

On March 20, 2025, MoonPay secured a $200 million revolving credit line from Galaxy for emergency liquidity needs.