Odaily Planet Daily News Lawyers said that if a pending lawsuit related to Luna is recognized as a class action, Canadian encryption investment company Galaxy Digital’s plan to list on Nasdaq may face new delays.
In the case, filed in Ontario Superior Court in Canada in December, the plaintiffs accused Galaxy CEO Mike Novogratz of making false statements about the company’s exposure to cryptocurrencies prior to the Luna debacle.
Galaxy plans to contest the charges. "We firmly believe the allegations are baseless and we intend to vigorously defend the case," Galaxy spokesman Michael Wursthorn said.
New evidence may emerge during the trial of the case. Sean Masson, a lawyer at the law firm Scott & Scott, said, "This may have consequences. These (evidence) disclosures will definitely attract the attention of the US Securities and Exchange Commission and may prevent Galaxy Digital from any efforts to list in the United States." (Forbes)