Cryptocurrency staking firm BitGo filed a lawsuit against Galaxy Digital on Sept. 12, seeking more than $100 million in damages for breach of the merger agreement, BitGo announced on Twitter.
Late yesterday, BitGo filed a lawsuit against Galaxy Digital, seeking more than $100 million in damages arising from Galaxy’s improper denials and willful breach of its merger agreement with BitGo.
— Bitgo (@BitGo) September 13, 2022
May 2021, Galaxy Digital announced It has agreed to acquire BitGo for $1.2 billion in stock and cash. The boards of directors of both companies have approved the transaction.
However, on August 15, 2022, Galaxy Digital announced that it was ending its acquisition plan. Galaxy Digital said BitGo had failed to comply with terms of the contract requiring it to file audited financial statements for 2021 by July 31, 2022. The company further said that in this case, “no termination fee will be paid.”
However, BitGo’s attorneys maintain that the company has fulfilled all its obligations, including submitting audited financial reports. His R. Brian Timmons, partner at Quinn Emanuel, the law firm representing BitGo, said on August 15th: press release:
“The attempt by Mike Novogratz and Galaxy Digital to blame BitGo is ridiculous.”
According to a BitGo statement in August, Galaxy Digital pledged to pay a $100 million reverse break fee in March 2022 to persuade BitGo to extend the merger agreement. At the time, Timmons said Galaxy Digital owed BitGo his promised $100 million termination fee.
