Scaramucci Urges Repeal of New York’s Martin Act Amid Galaxy Digital Settlement
Anthony Scaramucci, the founder of SkyBridge Capital, is calling for the repeal of New York’s Martin act. This anti-fraud law, enacted in 1921, is at the center of a recent $200 million settlement between the New York Attorney General (NYAG) and Galaxy Digital. The settlement stems from the collapse of the LUNA token.
On X, Scaramucci labeled the Martin Act as “dangerously powerful.” He argues that the law allows for potential abuse due to its broad investigative powers and low standard of proof. The law doesn’t require proving intent, making it prone to abuse.
Scaramucci argues that the NYAG’s use of the Martin Act to settle with Galaxy Digital is an example of “lawfare.” He believes this contradicts actions by the SEC and DOJ against Terraform Labs and its founder, Do Kwon. The NYAG alleged that Galaxy Digital’s marketing of LUNA misled retail investors. The crypto project’s collapse in May 2022 wiped out over $40 billion in value.
Scaramucci defends Galaxy Digital’s CEO, Michael Novogratz, saying he was misled by Terraform Labs. However, social media critics argue that Galaxy digital profited from promoting LUNA.
