Galaxy Digital has reached a $200 million settlement with the New York Attorney General (NYAG) over allegations related to the collapse of Terra LUNA. However, the agreement has sparked controversy, with BitGo CEO Mike Belshe openly criticizing the firm’s actions, calling them “not ethical.”
Mike Belshe Condemns Galaxy Digital’s Practices
Belshe, known for advocating deregulation in crypto, expressed surprise at the allegations outlined by the NYAG. In response to a post by Anthony Scaramucci on X, Belshe accused Galaxy Digital of engaging in pump-and-dump tactics, specifically:
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Offloading vested tokens while publicly encouraging investors to hold (HODL).
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Engaging in misleading promotional strategies that could harm market integrity.
Despite his critique, Belshe acknowledged his respect for Galaxy Digital’s CEO, Mike Novogratz, and his contributions to the crypto industry. However, he emphasized that such practices could lead to “overregulation”, which the industry has been striving to avoid.
Call for Principles-Based Regulation
Belshe suggested that crypto regulations should follow principle-based guidelines, ensuring that companies adhere to ethical standards. He outlined:
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Transparency in asset promotion—firms should not mislead investors about their holdings.
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No deceptive selling tactics—companies must disclose when they are selling assets they are promoting.
Crypto Regulation Under Trump vs. Biden
Belshe’s comments also touched on the changing regulatory landscape in the U.S.
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Under the Biden administration, major crypto firms, including Ripple (XRP), Coinbase, Kraken, and Consensys, faced aggressive legal action from the SEC.
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Under Trump’s influence, the regulatory stance appears to be shifting, with Paul Atkins, a nominee for SEC Chair, pledging a rational and coherent approach to crypto oversight.
This shift suggests that future regulations could be more industry-friendly, potentially reducing legal battles and encouraging innovation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your own research before making any investment decisions.
Note: This article has been refined and enhanced by ChatGPT.
