According to statements made by digital asset custody business and financial services provider BitGo, the firm has filed a lawsuit against crypto company Galaxy Digital and is seeking damages of more than $100 million. BitGo says Galaxy’s “unreasonable disapproval and willful breach of its merger agreement” led to the lawsuit.
BitGo seeks damages from Galaxy Digital for terminating merger agreement
On August 16, 2022, Bitcoin.com News reported billionaire investor Mike Novogratz on Galaxy Digital ending the company’s proposed acquisition deal for crypto asset financial services provider BitGo. Galaxy originally intended to buy BitGo in May 2021 for a $1.2 billion stock and cash deal. However, Galaxy said 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 over this information on a specific date.
Soon after Galaxy announced the termination of 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 unfair decision to terminate the merger.” Bitgo’s Announcement 13 details that the lawsuit aimed to address Galaxy’s alleged “unreasonable disapproval and willful breach of its merger agreement”. BitGo is working with Los Angeles-based litigation firm Quinn Emanuel and litigation firm partner Brian Timmons said:
Although Bitgo does not believe that the complaint contains any confidential information, it was filed under seal in Delaware Chancery Court and a great deal of care was taken in the event.
BitGo also said that Galaxy “opposes otherwise and seeks to rectify certain allegations before the complaint becomes public.” However, if some of the information is amended, the complaint should still be “accessible by the public immediately after 5 p.m. ET on Thursday.”
BitGo believes the company is owed $100 million due to termination fees, and many crypto supporters are following the story closely. “It will be interesting to see what the details of the allegations are,” one person replied to Bitgo’s Twitter post on Tuesday.
What do you think of Bitgo’s filing of a $100 million alleged breach of contract lawsuit against Galaxy Digital? Let us know what you think about this topic in the comment section below.
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