BitGo sues Galaxy Digital for copyright infringement, seeking $100M in damages

Mike Novogratz of digital asset custodian Bitgo has filed a lawsuit against cryptocurrency investment firm Galaxy Digital over its previous buyout.

BitGo took to Twitter on Tuesday Explain A list of lawsuits filed against Galaxy after it pulled out of a $1.2 billion acquisition deal with BitGo in mid-August.

Filed on Monday, the suit seeks more than $100 million in damages, accusing Galaxy of “improper rejection” and “willful” breach of the purchase agreement with BitGo, the company said.

BitGo said it filed the lawsuit in Delaware Chancery Court, emphasizing that the court documents are expected to be made public Thursday night. Galaxy is in “an abundance of caution” as it wants to fix some of the allegations before the complaint goes public, BitGo said on Twitter.

As previously reported, Galaxy terminated its acquisition of BitGo on August 15. The company has argued that it exercised its right to terminate the deal in connection with the merger after BitGo failed to submit audited financial statements for 2021.

Galaxy CEO Novogratz said he is still following the path to America on the Nasdaq. Galaxy believes BitGo’s claims are “without merit” and plans to vigorously defend the company.

BitGo and Galaxy did not immediately respond to Cointelegraph’s request for comment.

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The news comes as BitGo continues to develop additional products and services. The company on Tuesday announced the launch of its wealth management platform, which aims to give registered investment advisors and broker-dealers direct access to digital assets.

In the year Founded in 2013, Bitgo is a leading global digital currency firm that provides custodial, liquidity and security solutions, focusing exclusively on serving institutional clients. Last year, the company reported more than $64 billion in assets under protection.