The New York Attorney General and Galaxy Digital have agreed to a settlement over the crypto firm’s handling of the collapsed Terra LUNA cryptocurrency, with the agreement requiring Galaxy to pay $200 million for alleged violations of the Martin Act and New York Executive Law. 

A 49-page filing from the Office of the Attorney General of New York (OAG) outlines the investigation and the Office’s conclusions, alleging that “Galaxy’s conduct, including its misrepresentations and omissions about LUNA while simultaneously selling LUNA and failing to disclose its then-present intent to sell, constituted violations” of the above laws.

“This was not an easy decision and one that we considered carefully. Settling this matter will help Galaxy move forward and minimize distractions so that we can focus on our mission of driving innovation and growth in digital assets and artificial intelligence infrastructure,” said Galaxy CEO Michael Novogratz, in a statement.

Novogratz’s firm initially purchased more than 18.5 million LUNA tokens for $0.22 per token, a 30% discount from the spot price in October 2020 as part of an agreement with Terraform Labs. 

The OAG’s findings indicate that a Galaxy memo sent on the same day of the agreement propos...