Bitgo Files Lawsuit Against Novogratz’s Galaxy Digital for $100M Over ‘Intentional Breach’ of a Merger Agreement – Bitcoin News

According to statements by financial services provider and digital asset custody business Bitgo, the company has filed a lawsuit against cryptocurrency company Galaxy Digital and is seeking more than $100 million in damages. Bitgo said Galaxy’s “improper refusal and willful violation of the merger agreement” sparked the lawsuit.

Bitgo seeks damages from Galaxy Digital as Merger Agreement is terminated

On August 16, 2022, News report about billionaire investors Mike Novogratz’s Galaxy Digital terminates the company’s proposed acquisition agreement of crypto financial services provider Bitgo. Galaxy originally intended in May 2021 to buy Bitgo for $1.2 billion in cash and stock. However, Galaxy said that the contract termination was due to Bitgo’s “failure to provide” specific financial documents. More specifically, “audited financial statements for 2021” as Galaxy alleges that Bitgo did not provide this information by a specific date.

Shortly after Galaxy announced the termination of the agreement through a press release, Bitgo react against the company’s claims. In a press release published by Bitgo, the company emphasized that Galaxy Digital “is legally responsible for its improper decision to terminate the consolidation.” Bitgo’s notification on September 13 detailed that the lawsuit is intended to address Galaxy’s allegation of “improper refusal and willful violation of its merger agreement.” Bitgo is working with the Los Angeles-based litigation firm Quinn Emanuel and Brian Timmons, partner at the litigation firm said:

While Bitgo does not believe that the complaint contains any confidential information, it was filed with the Delaware Chancery Court with great care in this case.

Bitgo also said that Galaxy “opposes to the contrary and wishes to resolve some of the allegations before the complaint is made public.” However, if some of the information is redacted, the complaint must still be “accessed to 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 advocates have been closely following the story. “It will be interesting to see what the details of the allegations are,” one person replied to Bitgo’s Twitter post on Tuesday.

Cards in this story

1.2 billion won, BitGo, Bitgo . Legal Action, cryptocurrency custodian, custodian, Delaware-based company, Galaxy, Galaxy announcement, Galaxy CEO, Galaxy Digital, GLXY, legal action, MOONLIGHT, Mike Novogratz, nasdaq, Nasdaq List, Quinn Emanuel, R. Brian Timmons, SECOND, SEC review, Stock exchanges, Terra Blockchain, TSX: GLXY

What do you think about Bitgo filing a $100 million lawsuit against Galaxy Digital for an allegedly breached contract? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about the groundbreaking protocols emerging today.

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