The Rise of Galaxy Digital: From Legal Troubles to Nasdaq Listing
The renowned crypto investment firm Galaxy Digital is set to make a significant move next month by listing on the Nasdaq. The U.S. Securities and Exchange Commission (SEC) has given the green light to the firm’s registration statement, paving the way for its reorganization and domestication from the Cayman Islands to Delaware, as announced in a recent press release.
Shareholder Approval and Nasdaq Listing
Galaxy Digital has scheduled a crucial shareholder meeting on May 9th to seek approval for the reorganization. If approved, the Class A common stock of Galaxy Digital Inc., under its new Delaware holding company, will be listed on the Nasdaq with the ticker symbol GLXY.
Legal Troubles and Settlement
The decision to reorganize comes on the heels of legal troubles faced by Galaxy Digital with American regulators. In a recent settlement with the New York State Attorney General, Galaxy agreed to pay $200 million to resolve allegations related to its involvement with the LUNA token. The settlement marked the end of a contentious chapter for the firm.
Allegations and Settlement Details
New York Attorney General Letitia James alleged that Terra founder Do Kwon enlisted Galaxy Digital to purchase LUNA tokens and promote his project in Western markets. Galaxy Digital purchased 18.5 million LUNA tokens from Terraform Labs at a discounted price, which led to a surge in the token’s value following Galaxy’s marketing efforts.
Despite Galaxy’s public endorsement of LUNA, the firm was accused of selling millions of tokens into the market at inflated prices without disclosing its actions to investors. The settlement with the Attorney General put an end to these allegations and paved the way for Galaxy Digital’s future plans.
Looking Ahead
With the legal issues behind them, Galaxy Digital is now focused on its upcoming listing on the Nasdaq. The move signifies a new chapter for the investment giant as it transitions to a Delaware holding company. Investors and crypto enthusiasts alike will be closely watching the developments as Galaxy Digital prepares for this significant milestone.
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