Galaxy Digital, led by Michael Novogratz, has agreed to a $200 million settlement over its promotion of the now-defunct cryptocurrency Terra (LUNA). The New York Attorney General's office revealed Galaxy acquired 18.5 million LUNA tokens at a discount, promoting them without proper disclosure before selling.

The settlement involves staggered payments over three years. Galaxy was also accused of spreading false claims about Terra's integration with the Chai app, failing to verify information provided by Terraform Labs.

Terra's collapse in May 2022 led to significant market fallout, wiping out billions in value and causing widespread panic.