Scaramucci Slams NYC Lawsuit Over Galaxy Digital's LUNA Promotion

New York Attorney General's lawsuit against Galaxy Digital for its promotion of Terra (LUNA) has sparked a fierce response from industry figures. Anthony Scaramucci and SkyBridge Capital have labeled the legal action as 'lawfare,' arguing that the use of New York’s strict Martin Act is an abuse of the legal system. The lawsuit alleges that Galaxy Digital acquired a large volume of LUNA at a discount and promoted the token before selling it without proper disclosure, a move that allegedly helped push LUNA's price from $0.31 in October 2020 to a peak of $119.18 in April 2022. Meanwhile, other voices in the industry, including MoonPay's Keith Grossman, expressed disbelief at the breadth of the Martin Act, further underlining the controversy. This legal battle is unfolding in the broader context of the Terra collapse, one of the crypto industry's most notorious failures. The outcome of this case could have significant ramifications for promotional practices and legal liabilities in the crypto space, particularly around how discounted token acquisitions and subsequent promotions are handled.