Wall Street pro blasts NYAG: calls its $2 billion fine against Galaxy Digital "legal abuse"

Wall Street figure Anthony Scaramucci recently publicly criticized the New York Attorney General's Office (NYAG), standing up for his friend Mike Novogratz's Galaxy Digital.

The dispute stems from New York state's $2 billion fine imposed on Galaxy Digital, accusing it of violations during the promotion of the now-collapsed Luna coin.

Scaramucci openly stated on social media X that this punishment is purely a "legal abuse" and the real culprit should be the already fled Terra founder Do Kwon.

The cause of the matter dates back to March 28, when the New York State Attorney General accused Galaxy Digital of heavily promoting the Luna token after purchasing 18.5 million Luna coins at a low price of $0.31 in 2020 without adequately disclosing its holdings to investors.

It is worth noting that Novogratz himself was a fervent supporter of Luna, even tattooing related designs on his body when the price of Luna broke $100 in December 2021. However, with the collapse of the Terra ecosystem, this tattoo has now become "evidence of crime" in the eyes of regulators.

According to the settlement agreement, Galaxy Digital is required to pay a fine of $2 billion in installments over the next three years, with the first payment of $40 million due within 15 days.

Scaramucci is strongly dissatisfied with this, as he believes that the Martin Act gives regulators too much power, since the act allows for conviction without proving the defendant's intent.

He further pointed out that the penalties in New York State are in serious contradiction with the regulatory actions at the federal level. He also added that the SEC and the Department of Justice should be investigating Do Kwon and Terraform Labs.

The impact of this case in the crypto sphere stems not only from the enormous fines but also deeply touches on the core controversies of industry regulation:

That is, when a token project experiences a collapse, especially in the current situation where there is a lack of a clear regulatory framework, the differences in enforcement standards between state and federal regulatory agencies also bring significant uncertainty in compliance for industry participants.

This phenomenon of "over-regulation" may inhibit financial innovation and make institutions hesitant when promoting new projects.

Do you think institutions that promote explosive projects should be held "jointly responsible"? Leave a comment in the discussion!

#加密货币监管 # legal disputes #blockchain compliance