Galaxy Digital to Pay $200 Million Settlement in Terra-LUNA Case
Galaxy Digital, the investment firm led by Mike Novogratz, has announced a $200 million settlement with the New York Attorney General’s office. The case pertains to the company’s involvement in the Terra-LUNA ecosystem, which suffered a collapse in May 2022 resulting in the loss of around $60 billion in market value.
The settlement encompasses Galaxy’s investments, trading operations, and public statements regarding LUNA, the flagship token of the Terra project. This payment aims to bring the lawsuits related to one of the biggest cryptocurrency disasters to a definitive close. It also marks a turning point for Galaxy Digital as it seeks to move on from this chapter.
“On March 27, 2025, Galaxy reached an agreement with the New York Attorney General’s office to resolve civil complaints relating to certain investments, trading, and public statements made in connection with the digital asset LUNA between the end of 2020 and 2022.”
Solid Financial Results in 2024
Despite this legal setback, Galaxy Digital has displayed strong financial health, reporting a net profit of $174 million in the fourth quarter of 2024. This brings its annual profit to $365 million, including the accounting provisions related to the fine imposed by the State of New York.
In terms of profitability, this represents a diluted earnings per share of $1.02. These figures highlight the robustness of Galaxy’s business model, despite past turbulence, and confirm the company’s position as a heavyweight in the digital asset financial sector.
Galaxy’s Strategic Shift Towards Artificial Intelligence
Galaxy is not simply managing its past; it is actively preparing for its future. The company has just signed a 15-year lease agreement with the cloud computing firm CoreWeave. This agreement involves the supply of 133 megawatts of electricity for artificial intelligence and high-performance computing applications.
This strategic partnership will enable Galaxy to leverage its Helios data center located in West Texas for high-value-added activities. The company expects to generate approximately $4.5 billion in revenue over the duration of the contract, showcasing its commitment to diversify beyond the pure crypto sector.
A New Chapter and a Clear Direction
With this legal settlement and strong financial results, Galaxy Digital enters a new phase of development. Mike Novogratz’s company, long associated with its early and substantial support for Terra, appears to have rebounded and repositioned its strategy towards future sectors.
The message is clear: Galaxy no longer wishes to be solely associated with decentralized finance but intends to play a leading role in the digital infrastructures of the future.
