By Vicky Ge Huang

Galaxy Digital and its affiliates will pay $200 million to settle with the New York's top prosecutor stemming from their involvement with the cryptocurrency Luna.

The New York Attorney General's Office said its investigation found that Galaxy promoted and sold Luna to the public without disclosing its intent to sell its holdings, according to a regulatory filing. Galaxy said Friday it reached an agreement with the NYAG on Thursday.

In October 2020, Galaxy bought more than 18.5 million Luna tokens from Terraform Labs at 22 cents each, nearly 30% below the market price of 31 cents, according to the filing. After the purchase, CEO Mike Novogratz endorsed the token, unveiling a Luna tattoo on his arm in January 2022 after the token shot above $100.

While Novogratz publicly talked up Luna, Galaxy sold millions of tokens into the market at prices significantly higher than its initial purchase price without disclosing that it was selling, the NYAG said. The firm reaped hundreds of millions of dollars in profits, according to the state prosecutor.

"Settling this matter will help Galaxy move forward and minimize distractions so that we can focus on our mission of driving innovation and growth in digital assets and artificial intelligence infrastructure," Novogratz said.

Separately, Galaxy said it signed a 15-year lease deal with cloud-computing provider CoreWeave, whose shares debuted Friday.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

March 28, 2025 10:29 ET (14:29 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.