According to statements made by the digital asset custody business and financial services provider Bitgo, the firm has filed a lawsuit against the crypto company Galaxy Digital and is seeking damages for more than $100 million. Bitgo says Galaxy’s “improper repudiation and intentional breach of its merger agreement” caused the lawsuit.
Bitgo Seeks Damages From Galaxy Digital for Terminated 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 originally had intentions in May 2021 to purchase Bitgo for a $1.2 billion stock and cash deal. 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:
Although Bitgo does not believe that the complaint contains any confidential information, it was filed in Delaware Chancery Court under seal in an abundance of caution in the event.
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 believes the company is owed $100 million due to termination fees, and many crypto supporters have been following the story closely. “Will be interesting to see what the details of the allegations are,” one person replied to Bitgo’s Twitter post on Tuesday.
Tags in this story
1.2 billion, BitGo, Bitgo legal action, crypto custodian, custodian, Delaware-based company, Galaxy, Galaxy announcement, Galaxy CEO, Galaxy Digital, GLXY, legal action, LUNA, Mike Novogratz, nasdaq, Nasdaq Listing, Quinn Emanuel, R. Brian Timmons, SEC, SEC review, stock exchange, Terra Blockchain, TSX: GLXY
What do you think about Bitgo filing a lawsuit against Galaxy Digital for $100 million over an alleged breached contract? Let us know what you think about this subject in the comments section below.
Jamie Redman
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
