Galaxy Digital Settles $200 Million Lawsuit with New York Attorney General
Galaxy Digital, the renowned digital asset financial services firm led by Mike Novogratz, has agreed to a settlement worth $200 million with the New York Attorney General’s (NYAG) office. This settlement is related to the collapse of the Terra-Luna ecosystem in 2022, which resulted in significant financial losses for investors.
The NYAG had been investigating Galaxy Digital’s involvement in the collapse of LUNA, an asset within the Terra-Luna ecosystem, which lost around $60 billion in value in May 2022. As part of the settlement agreement, Galaxy Digital will pay $200 million to the State of New York to resolve the legal proceedings.
In its latest earnings statement, Galaxy Digital disclosed the settlement amount, which has been factored into its financial results. The company reported a profit of $174 million for the fourth quarter of 2024 and $365 million for the full year when accounting for the legal provision for the settlement.
In addition to the settlement, Galaxy Digital has also entered into a significant business agreement. The company has signed a 15-year lease with CoreWeave, a cloud-computing firm, to supply 133 MW of electricity for artificial intelligence and high-performance computing at its Helios data center in West Texas. This partnership is expected to generate approximately $4.5 billion in revenue over the duration of the lease.
Galaxy Digital’s earnings per share for the period amounted to $1.02 on a diluted basis. Following the announcement of the settlement and financial results, GLXY shares closed 3.54% lower on Thursday.
The settlement with the NYAG marks a significant milestone for Galaxy Digital as it seeks to address the legal challenges stemming from the Terra-Luna ecosystem collapse. The company remains committed to upholding its reputation in the digital asset industry and fostering trust among its stakeholders.
