Galaxy Digital, one of the leading companies in the crypto currency sector, went to a compromise worth $ 200 million with the New York Chief Public Prosecutor’s Office. The company reportedly faced allegations that the Luna Token, a Terra ecosystem, hidden its financial interests during the promotion process. It was stated that the compromise was linked to the lack of explaining the large gains obtained during the rise of Luna Token. The prosecutor’s office argues that the company causes significant price movements in the market by acting misleading the public.
Are financial interests hidden?
The New York Chief Public Prosecutor said that Galaxy Digital had purchased Luna Token at a low price in 2020 and made a large -scale promotion and did not share his financial interests with the public in this process. The company’s marketing activities without explaining their direct interests on this entity was considered as a serious violation of transparency. According to the prosecutor’s statement, the company bought Luna collectively and disposed of in different parties as the price rose, and in this way he earned hundreds of millions of dollars.
It is claimed that the Galaxy Digital purchased 18.5 million Luna Token in a discounted way during the said transactions, and that it gradually sells them and earned big income. While the total revenue obtained from these sales exceeded $ 100 million, the company did not make any notification against the public in this process. Although the company did not explicitly accept the charges, it accepted the reconciliation and ended the legal process.
Market Dynamics and Regulation Discussions
The prosecution says that Galaxy Digital’s promotional activities are directly effective in increasing the price of Luna Token. Token price, which was $ 0.31 in October 2020, rose to $ 119.18 until April 2022. In this period, the role of companies that directly the market began to attract more attention of regulatory institutions. The collapse and investor losses after the harsh rise in Luna made the transparency of the transaction volumes in this period, especially.
Michael Novogratz, the founder of Galaxy Digital, closely follows the developments on the regulation front. Novogratz, Bitcoin indicating that the regulatory framework for crypto currencies in the USA has changed $84,916.31 He pointed out that their reserves are now accepted in a wider environment. According to him, this change can accelerate the adoption of global crypto currencies. However, cases such as Luna reveal how strong regulatory organs can make interventions.
On the other hand, Luna Token has recently declined to the weekly bottom levels. Token, which has lost about 7 %in the last 24 hours in the last 24 hours, is still traded in the shadow of previous price performances. This is one of the factors affecting the investor sensitivity in the market. Experts, such events show how sensitive the crypto currency market is in the face of regulatory steps.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
