Mahdi M. Hussein

The plaintiff investor sought leave to proceed with a secondary market misrepresentation claim under the Securities Act and to certify a class action against Galaxy Digital Holdings Ltd. and its senior officers.

The claim centers on Galaxy's alleged failure to disclose the specific risks associated with its heavily promoted investment in the Luna/TerraUSD algorithmic stablecoin.

The court found that the plaintiff brought the action in good faith and established a reasonable possibility of success at trial, noting sufficient evidence that Galaxy misled investors by omitting material risks of the stablecoin pair, which eventually collapsed in a 'death spiral.' The court granted leave to proceed and certified the class action.