Galaxy Digital CEO Anthony Scaramucci Strongly Criticizes the New York Attorney General's (NAYG) LUNA Crypto Lawsuit

Anthony Scaramucci, the founder of SkyBridge Capital, has strongly criticized the New York Attorney General's (NAYG) Galaxy Digital lawsuit.

Founder of SkyBridge Capital, Anthony Scaramucci, has strongly criticized the New York Attorney General’s (NAYG) Galaxy Digital lawsuit, calling it “lawfare, pure and simple”.

The lawsuit had accused Galaxy of violating New York’s Martin Act in connection with its promotion of the now-collapsed LUNA crypto. The latest development has stirred significant controversy within the cryptocurrency space.

In a post on X on March 28, Scaramucci argued that the Martin Law, the powerful anti-fraud act, enables prosecutors to override the proof of intent requisite. “The law has no need to prove intent, creating a low standard of proof that can open the door for abuse like this. It shouldn’t exist,” he stated.

Martin Law: A Powerful Anti-Fraud Act

The Martin Act has been the subject of longstanding criticism for its vague scope, which allows prosecutors to pursue financial cases with almost no evidentiary requirements. It is named after former New York State Governor William Martin, who signed the original act in 1921. The act is still in effect today and has been used to prosecute a wide range of financial crimes, including Ponzi schemes, securities fraud, and commodities price manipulation.

Crypto Leaders React to the Lawsuit

The lawsuit had alleged that Galaxy Digital acquired 18.5 million LUNA tokens at a discounted rate in October 2020 and promoted them before selling without following disclosure rules. Galaxy ultimately agreed to a $200 million settlement. Scaramucci defended CEO Michael Novogratz, claiming he had been misled by Terraform Labs CEO, Do Kwon about Terra’s potential.

Other industry figures also put their two cents in on the case. Moonpay’s President of Enterprise, Keith Grossman, admitted he had to learn about the Martin Act using ChatGPT. He went on to describe it as “the essence of lawfare”. Meanwhile, investor Anthony Pompliano also publicly testified to Novogratz’s character.

The lawsuit came in the wake of Terra’s collapse in 2022, which wiped out billions in investor funds. This was one of the biggest failures in crypto history. However, Terra soon reappeared, forming Terra 2.0, a more stable blockchain for trading. Given the recent market buzz, let us take a quick look at how Terra has been performing on the charts.

LUNA Price Analysis of the Last 24 Hours: Market Crash Brings Terra 2.0 Down

The new Terra 2.0 token has had its successful outings, but the last 24 hours have painted a bearish story for the token. LUNA commenced trading yesterday at $0.2101. It continued the range-bound behavior from the previous day, testing key resistance and support levels. With a slight golden cross on the MACD, LUNA tested the resistance at $0.212 but failed to break across.

Soon enough, a death cross formed as buying pressure slumped. The market crash was evident, as LUNA started falling slowly, going to $0.208 at first. The death cross soon consolidated and LUNA spiked downward, going to $0.203. A golden cross did stand in support, but could only slow down the decline as LUNA hopped onto an elongated downtrend. Any form of consolidation would end up in a bearish triangle as the resistance trend line kept dropping.

The downtrend finally ended with LUNA at $0.189, finding strong support there. As the RSI showed oversold conditions, a price reversal occurred, taking LUNA up slowly. But the uptrend met strong resistance at $0.194. LUNA failed to sustain the buying momentum, and the trend was again reversed. A downtrend ensued with LUNA now at $0.186.