The New York State Attorney General’s (NAYG) recently legal action against Galaxy Digital in its promotional touch today that collapsed cryptocurrency terra (Luna) is unfair and an abuse of the legal system, says Skybridge Capital and founder Anthony Scaramucci.
“It is law, pure and simple because of a fuzzy but dangerous powerful New York law known as Martin Act,” Scaramucci Says In a post of March 28 x.
Martin’s law can “open the door for abuse”
“The law does not need to prove the purpose, creating a low standard of proof that the door may open for the abuse like this. It should not exist,” he said.
New York’s Martin Act is one of the strict anti-fraud and security laws of the US, allowing prosecutors to pursue financial fraud cases without having to prove the purpose. Nayg has accused the Galaxy Digital Galaxy digital to agree with A $ 200 million negotiation.
According to NAYG documents filed on March 24, Galaxy Digital obtained 18.5 million Luna The tokens in a 30% discount on October 2020, then advanced them before selling them without complying with disclosure policies.
Scaramucci once again said that Galaxy CEO Michael Novogratz was under the impression that everything he said about Luna was true, as he was deceived by terraform labs and his former CEO, Do Kwon.
Source: Amanda Fischer
Meanwhile, the president of Moonpay of Enterprise, Keith Grossman, Says He has never heard of the Martin Act and has to look at it using AI Chatbot Chatgpt.
“It is immense and important is the essence of the law,” Grossman said. “Sorry you caught up with its crosshairs, Mike,” he added.
Related: Sonic opens high yield algorithmic stablecoin, which reigns over terra-luna ‘PTSD’
The filing said Galaxy helped with a “little known” token, which refers to Luna, increased market prices from $ 0.31 in October 2020 to $ 119.18 in April 2022 while “profiting for hundreds of millions of dollars.”
Asset manager and investor Anthony Pompliano said he was not familiar with the details of the lawsuit but that has been vouched for Novogratz, who has called him “good man” who devoted a lot of time and money to helping others.
Terra collapse is one of the most contagious failures in the crypto industry. In March 2024, Sec Attorney Devon Staren said In the US district court for the Southern District of New York Terra was a “house of cards” that collapsed for investors in 2022.
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