Ontario Court Certifies Class Action Against Galaxy Digital Over TerraLuna Scandal

An Ontario court has certified a class action lawsuit against Galaxy Digital Holdings Ltd. over alleged misrepresentations about its business and a stablecoin that collapsed in 2022.

The proposed case, which argues that the company and executives made false statements in financial releases and public statements, has been granted leave to proceed.

The court found that there is sufficient evidence of potentially misleading statements, including claims about the risks of algorithmic stablecoins and the company's exposure to the Luna token.

The class action covers investors who purchased Galaxy Digital's stock between May 17, 2021 and May 6, 2022.