Galaxy Digital Pays $200M Settlement Over LUNA Investment Debacle

Galaxy Digital, led by Mike Novogratz, has agreed to a $200 million settlement with the New York Attorney General over its involvement with LUNA investments following the catastrophic collapse of the Terra-Luna ecosystem in May 2022, which erased around $60 billion in value. The settlement, disclosed alongside the firm’s latest earnings report indicating profits of $174 million in Q4 and $365 million for 2024, addresses issues related to the company’s investment, trading, and public statements about LUNA. In addition to resolving the legal matter, Galaxy Digital has entered a 15-year lease agreement with cloud-computing firm CoreWeave, which will supply 133 MW of electricity for its Helios data center in West Texas. This lease is anticipated to generate around $4.5 billion in revenue, as the company also reported a diluted earnings per share of $1.02. However, on the day of the announcement, Galaxy Digital’s shares closed 3.54% lower, reflecting investor caution amid the settlement news.