According to statements made by digital asset protection business and financial services provider Bitgo, the company has filed a lawsuit against crypto company Galaxy Digital and is seeking damages of more than $100 million. BitGo claims that Galaxy’s improper objection and willful breach of the merger agreement gave rise to the case.
Bitgo is seeking damages from Galaxy Digital for the aborted merger agreement
In the year August 16, 2022 Bitcoin.com News reports that billionaire investor Mike Novogratz’s Galaxy Digital has terminated its proposed acquisition of crypto asset financial services provider BitGo. Galaxy originally intended to buy Bitcoin in May 2021 in a $1.2 billion stock and cash deal. However, Galaxy said it was terminated due to Bitgo’s “failure to provide” specific financial documents. Notably, Bitgo did not file this information on a certain date, Galaxy’s lawsuit states, “audited financial statements for 2021.”
BitGo responded to the company’s allegations immediately after Galaxy announced the termination of the deal in a press release. In a press release published by BitGo, the company emphasized that Galaxy Digital is “legally responsible for its improper decision to terminate the merger.” bitgo advertisement The lawsuit, filed Sept. 13, details that it aims to address Galaxy’s “improper repudiation and willful breach of the merger agreement.” BitGo is working with Los Angeles-based litigation firm Quinn Emanuel, and the firm’s partner Brian Timmons said:
Although BitGo does not believe the complaint contains any confidential information, it has been filed under a precautionary seal in the Delaware Chancery Court.
BitGo also said that Galaxy “argues to the contrary and wants to correct certain allegations before the complaint becomes public.” However, if some information is redacted, the complaint should still be “available to the public no later than 5 p.m. on Thursday.”
Bitgo believes the company owes $100 million due to termination fees, and many crypto fans are following the story closely. “It will be interesting to see what the details of the lawsuit are,” one person responded to a BitGo Twitter post on Tuesday.
What do you think about Bitgo suing Galaxy Digital for $100 million over alleged breach of contract? Let us know what you think about this in the comments section below.
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