Galaxy Digital Settles With NYAG for $200 Million Over Terra (LUNA) Investment Fallout

Galaxy Digital Resolves Terra-LUNA Fallout With $200M Settlement, Closes 2024 in the Green

Galaxy Digital has moved to put one of crypto’s most painful chapters behind it. The Mike Novogratz-led firm will pay $200 million to settle with the New York Attorney General’s office over its involvement in the Terra-LUNA collapse that rocked the market in 2022.

The agreement, disclosed Friday, brings closure to investigations into Galaxy’s investment in, trading of, and public statements about LUNA, which lost tens of billions in value nearly overnight during its dramatic implosion.

Despite the hefty settlement, Galaxy ended 2024 on a strong note. The firm reported $174 million in profit for Q4 and $365 million for the full year, factoring in the legal costs tied to the NYAG deal. On a per-share basis, that equates to $1.02 in diluted earnings.

Beyond regulatory matters, Galaxy also announced a major expansion into the AI and high-performance computing sector. It has signed a 15-year lease with CoreWeave, a leading cloud infrastructure provider. Under the deal, Galaxy will supply 133 megawatts of electricity from its Helios data center in West Texas. The company projects $4.5 billion in revenue from the lease over its duration.

Still, investor sentiment appeared cautious—GLXY shares closed down 3.54% on Thursday, suggesting the market is still digesting the implications of the settlement and the company’s pivot into new verticals.