The Michael Novoghatz of the company Crypto Investo Investo Investo Investo
According to To the documents of the New York Prosecutor's Office presented on March 24, Galaxy Digital acquired 18.5 million Luna icons with a 30 % discount, then promoted it before selling it without adhering to the rules of disclosure. Deposit files:
“Ultimately, Galaxy helped an unknown code to increase the market price from $ 0.31 in October 2020 to $ 119.18 in April 2022, while it benefited from hundreds of millions of dollars.”
As part of the settlement agreement, Galaxy will pay $ 200 million in cash relief over a period of three years: 40 million dollars within 15 days, another $ 40 million within one year, and additional payments worth $ 60 million due during the second and third year, respectively.
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Galaxy Digital is said to have published fake news
He also accused the Galaxy Digital and Novoghatz file of posting false claims about the use of Terra. In particular, the company stated that the South Korean payment application was built on Terra Blockchain, which was not accurate.
This claim was also included in a press release sent to Bloomberg highlighting that the application “hosts more than 2 million users and generates $ 1.2 billion in the annual transactions volume.” The release says:
“These phrases were wrong. It was based on KWON and Terraform representations to Galaxy, but Galaxy failed to verify them independently.”
Novogratz of Galaxy Digital mentions the use of Terra in Chay after Terra collapsed. source: Galaxy Digital
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Terra collapse and market repercussions
Terra and Stablecoin algorithm, Terrausd (UST), both of them have seen a major collapse due to a collapse in the mechanism designed to keep the UST connection to US dollar in May 2022. The event happened when a large holder sold a large amount of UST.
The large sales process sparked the market panic, causing UST to deviate from its expected value. The mechanism aimed at installing UST in the new Luna icons is aimed at buying UST, which leads to great enlargement in Luna supply and creating severe pressure on the Luna price.
As Cointelegraph mentioned at the time, if the maximum Luna market becomes less than UST, there will be no enough money to keep stablecoin connection. With the support of the assets supported by Stablecoin, as its supply continued, the assets entered into a self -enhancement whirlpool, which caused almost all assets to lose all its value within hours.
This spent billions of market value and sparked the shrinkage of the broader cryptocurrency market. The memory of this event is still new, as the last veil revealed Sonic Blockchain about the high -return algorithm in fears due to the perceived similarities.
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