Crypto Drama: BitGo CEO Calls Out Galaxy Digital’s $200 Million Blunder! đŸ˜±

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  • Galaxy Digital settles with NYAG for a staggering $200 million over the Terra LUNA debacle.
  • BitGo CEO champions ethical crypto practices and advocates for principles-based regulation.

In a plot twist worthy of a particularly convoluted soap opera, Galaxy Digital has reached a $200 million settlement with the New York Attorney General (NYAG) over its alleged mishandling of the now-defunct Terra LUNA cryptocurrency. Who knew that digital coins could cause such a ruckus? 💰

Mike Belshe Takes a Jab at Galaxy Digital

Enter stage left, BitGo CEO Mike Belshe, who, despite his usual penchant for deregulation, has decided to don his regulatory cape and weigh in on this unfolding drama. It seems the NYAG’s case against Galaxy Digital has even made him reconsider his stance on oversight. Shocking, I know! đŸ˜Č

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Belshe didn’t hold back, criticizing Galaxy Digital’s rather dubious pump-and-dump tactics. Apparently, they were offloading tokens faster than a cat can knock a glass off a table, all while preaching the virtues of HODLing. Talk about a mixed message! đŸ±đŸ’„

He did, however, tip his hat to Novogratz, acknowledging his contributions to the crypto circus. But even respect can’t shield one from the harsh light of ethics, it seems.

Belshe remarked,

“I’ve always thought Mike brought good maturity to crypto and respected him for it, but I was shocked to read the facts outlined by NYAG. So, legal overreach or not, it’s not ethical, and this type of behavior makes our entire industry look bad. Unchecked, this is what leads to ‘over regulation’.”

In a moment of clarity, he suggested a way out,

“’Principles based regulation’ could fit well here: don’t lie to promote assets you hold; don’t tell others to buy while hiding the fact that you’re selling.”

Crypto Regulation in the Trump vs. Biden Administration

As expected, Belshe’s emphasis on crypto regulation subtly reflects the stark contrast between the Biden and Trump administrations’ approaches to the industry. It’s like watching two different chefs in a kitchen, one flambĂ©ing and the other just trying to boil water.

Under Biden, major crypto firms like Consensys, Ripple [XRP], Robinhood, MetaMask, Coinbase, and Kraken faced relentless legal battles with the SEC. It was like a never-ending game of whack-a-mole, but with lawyers instead of mallets.

However, with Trump’s return, many of these disputes have finally been resolved, signaling a shift in regulatory stance. It’s almost as if the crypto gods decided to take a coffee break.

This change is further reinforced by Paul Atkins, Trump’s SEC chair nominee, who has recently pledged to establish a more “rational” and “coherent” regulatory framework for crypto, potentially ushering in a new era of industry-friendly policies. Or at least a less chaotic one.

In his statement during the U.S. Senate Banking Committee hearing, he put it best when he said,

“A top priority of my chairmanship will be to work with my fellow Commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.”

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2025-03-30 21:17