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According to statements made by the digital asset and financial services provider Bitgo, the firm has filed a lawsuit against the crypto company Galaxy Digital, demanding more than $100 million in damages. Bitgo says Galaxy’s “improper rejection and willful breach of the merger agreement” prompted the lawsuit.
On August 16, 2022, Bitcoin.com News reported on billionaire investor Mike Novogratz’s Galaxy Digital closing the company’s proposed acquisition deal for crypto-asset financial services provider Bitgo. Galaxy initially had intentions in May 2021 to acquire Bitgo for a $1.2 billion stock and cash deal. However, Galaxy said the termination was due to Bitgo’s “failure to provide” specific financial documents. More specifically, “audited financial statements for 2021” as Galaxy claims that Bitgo did not provide this information on a specific date.
Immediately after Galaxy announced they were ending the deal via a press release, Bitgo responded to the company’s claims. In a press release published by Bitgo, the company emphasized that Galaxy Digital was “legally responsible for its inappropriate decision to terminate the merger.” Bitgo’s announcement Sept. 13 says the lawsuit aims to address Galaxy’s alleged “improper rejection and willful breach of the merger agreement.” Bitgo is working with Los Angeles-based litigation firm Quinn Emanuel and the litigation firm’s partner Brian Timmons said:
While Bitgo does not believe the complaint contains any confidential information, it was filed in the Delaware Chancery Court under seal in an abundance of caution in the case.
Bitgo also said that Galaxy “claims otherwise and wants to redact some of the claims before the complaint becomes public.” However, if any of the information is redacted, the complaint should still be “available to the public shortly after 5:00 PM ET on Thursday.”
Bitgo believes the company owes $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 responded on Bitgo’s Twitter post on Tuesday.
What do you think about Bitgo filing a $100 million lawsuit against Galaxy Digital over an alleged breach of contract? Let us know what you think about this topic in the comments section below.
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