Bitgo, a digital asset custodian and financial service provider, stated that Galaxy Digital has brought a case against them and sought damages of more than $100 Million. Bitgo says Galaxy’s “improper repudiation and intentional breach of its merger agreement” caused the lawsuit.
Galaxy Digital Seeks Bitgo Damages for the End of the Merger Agreement
On August 16, 2022, Bitcoin.com News reported on billionaire investor Mike Novogratz’s Galaxy Digital terminating the company’s proposed acquisition deal for the crypto asset financial services provider Bitgo. Galaxy initially planned to acquire Bitgo in May 2021, for $1.2 million stock and cash. However, Galaxy said that the termination was due to Bitgo’s “failure to deliver” specific financial documents. More specifically, “audited financial statements for 2021” as Galaxy alleges that Bitgo did not turn this information in on a specific date.
Immediately after Galaxy announced it terminated the deal via a press release, Bitgo reacted to the company’s allegations. In a press release published by Bitgo, the company stressed that Galaxy Digital was “legally responsible for its improper decision to terminate the merger.” Bitgo’s announcement on September 13 details that the lawsuit aims to address Galaxy’s alleged “improper repudiation and intentional breach of its merger agreement.” Bitgo is working with the Los Angeles-based litigation firm Quinn Emanuel and the litigation firm’s partner Brian Timmons said:
Bitgo doesn’t believe the complaint contains confidential information. However, the Delaware Chancery Court filed it under seal to show its excess of caution.
Bitgo also said that Galaxy “contends otherwise and wishes to redact some of the allegations before the complaint becomes public.” However, if some of the information is redacted, the complaint should still be “accessible by the public shortly after 5 pm ET on Thursday.”
Bitgo claims that the company owes $100 million in termination fees. Many crypto enthusiasts have closely followed the news. “Will be interesting to see what the details of the allegations are,” one person replied to Bitgo’s Twitter post on Tuesday.
How do you feel about Bitgo suing Galaxy Digital for $100 Million over a breached contract? Please comment below to let us know your thoughts on this topic.
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