{"id":126054,"date":"2025-03-29T09:16:01","date_gmt":"2025-03-29T09:16:01","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126054"},"modified":"2025-03-29T09:16:01","modified_gmt":"2025-03-29T09:16:01","slug":"nayg-lawsuit-against-galaxy-was-lawfare-pure-and-simple-scaramucci","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126054","title":{"rendered":"NAYG lawsuit against Galaxy was \u2018lawfare, pure and simple&#039; \u2014 Scaramucci"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe New York State Attorney General\u2019s (NAYG) recent legal action against Galaxy Digital over its promotional ties to the now-collapsed cryptocurrency Terra (LUNA) was unfair and an abuse of the legal system, says SkyBridge Capital and founder Anthony Scaramucci.<br \/>\n\u201cIt\u2019s LAWFARE, pure and simple due to an obscure but dangerously powerful New York law known as the Martin Act,\u201d Scaramucci said in a March 28 X post.<br \/>\nMartin Law can \u201copen the door for abuse\u201d<br \/>\n\u201cThe law has no need to prove intent, creating a low standard of proof that can open the door for abuse like this. It shouldn\u2019t exist,\u201d he said.<br \/>\nNew York\u2019s Martin Act is one of the US&#8217;s strictest anti-fraud and securities laws, allowing prosecutors the power to pursue financial fraud cases without needing to prove intent. The NAYG alleged that Galaxy Digital violated the Martin Act over its alleged promotion of Terra, with Galaxy Digital agreeing to a $200 million settlement.<br \/>\nAccording to NAYG documents filed on March 24, Galaxy Digital acquired 18.5 million LUNA tokens at a 30% discount in October 2020, then promoted them before selling them without abiding by disclosure rules.\u00a0<br \/>\nScaramucci reiterated that Galaxy CEO Michael Novogratz was under the impression everything he was saying about Luna was true, as he had been deceived by Terraform Labs and its former CEO, Do Kwon.<br \/>\nSource: Amanda FischerMeanwhile, MoonPay president of enterprise, Keith Grossman, said he had never heard of the Martin Act and had to look it up using AI chatbot ChatGPT.<br \/>\n\u201cIt is so broad and essentially is the essence of lawfare,\u201d Grossman said. \u201cSorry you got caught in the crosshairs of it, Mike,\u201d he added.<br \/>\nRelated: Sonic unveils high-yield algorithmic stablecoin, reigniting Terra-Luna \u2018PTSD\u2019<br \/>\nThe filing alleged that Galaxy helped a \u201clittle-known\u201d token, referring to LUNA, increase its market price from $0.31 in October 2020 to $119.18 in April 2022 while \u201cprofiting in the hundreds of millions of dollars.\u201d<br \/>\nAsset manager and investor Anthony Pompliano said he isn\u2019t familiar with the details of the lawsuit but vouched for Novogratz, calling him a \u201cgood man\u201d who has devoted a lot of time and money to helping others.<br \/>\nThe Terra collapse is one of the crypto industry\u2019s most infamous failures. In March 2024, SEC attorney Devon Staren said in the US District Court for the Southern District of New York that Terra was a \u201chouse of cards\u201d that collapsed for investors in 2022.<br \/>\nMagazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder<a href=\"https:\/\/cointelegraph.com\/news\/nayg-lawsuit-galaxy-digital-lawfare-anthony-scaramucci?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe New York State Attorney General\u2019s (NAYG) recent legal action against Galaxy Digital over its promotional ties to the now-collapsed cryptocurrency Terra (LUNA) was unfair and an abuse&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126054"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126054"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126054\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126054"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}