Anthony Scaramucci, founding father of SkyBridge Capital, says New York’s Martin Act, an anti-fraud statute enacted in 1921, must be repealed.
The SkyBridge Capital founder’s name for the abolishing of the legislation comes within the wake of the New York Legal professional Basic’s $200 million settlement settlement with Galaxy Digital. And all of it pertains to the collapsed LUNA (LUNA) token.
In a submit on X, Scaramucci, labelled the Martin Act as a “dangerously powerful” legislation whose utility is prone to be abused and result in authorized overreach. The Martin Act permits the NYAG to deliver lawsuits in opposition to events deemed to have violated its stipulations, however in line with Scaramucci, the sweeping authority allowed the AG when it comes to investigation and penalties will be abused.
Without having to show intent, the Act comes quick. It’s “low standard of proof” is what the SkyBridge Capital founder says is harmful. To him, this legislation “shouldn’t exist,” and NYAG’s use of the Act to achieve the $200 million settlement with Galaxy Digital is “lawfare pure and simple.”
He added that the case and the settlement is at odds with actions taken by the US Securities and Trade Fee and the Division of Justice.
“This makes no sense and is completely at odds with the SEC and DOJ which have been pursuing actions against Do Kwon and Terraform,” he posted. “It’s [lawfare] pure and simple due to an obscure but dangerously powerful New York law known as the Martin Act. 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.”
In its investigation, the NYAG alleged monetary misconduct on the a part of Galaxy Digital, claiming the agency’s advertising and marketing of LUNA ultimately harmed retail. The crypto challenge’s collapse in Could 2022 noticed greater than $40 billion in worth vanish into skinny air.
Scaramucci says Galaxy Digital and its chief government Michael Novogratz have been deceived by dangerous actors – Terraform Labs and its founder Do Kwon.
“Novogratz is a dear friend and one of the smartest investors I know. Everything he ever said about Luna was because he thought it was true based on the deception perpetrated by the real bad actors here, Do Kwon and Terraform Labs.”
Regardless of the sentiment on the Martin Act, Scaramucci’s remarks on Novogratz have largely been criticized on social media. Many say Galaxy Digital “was paid” to pump LUNA and it reaped big income as alleged within the investigation.
