Bitgo, a digital asset custody company and financial services provider, has stated that the firm has filed a lawsuit against Galaxy Digital seeking damages of more than $100 million. Bitgo claims Galaxy's "improper Repudiation and Intentional Breach of its Merger Agreement" is what caused the lawsuit.
Galaxy Digital Sues Bitgo for Damages Resulting from the Terminated Merger Agreement
Bitcoin.com News reported that Mike Novogratz, a billionaire investor, had canceled Galaxy Digital's proposal to acquire Bitgo, a crypto asset financial services company. Galaxy had originally planned to buy Bitgo in May 2021 for $1.2 billion cash and stock. Galaxy claimed that Bitgo's failure to provide financial documents was the reason for Bitgo's termination. Galaxy claims that Bitgo failed to submit audited financial statements for 2021 on a particular date.
Bitgo responded to Galaxy's claims immediately after it released a press release indicating that it had ended the deal. Bitgo published a press release stating that Galaxy Digital was responsible for the termination of the deal.
Bitgo doesn't believe the complaint contains confidential information. However, the Delaware Chancery Court filed it under seal to show its excess of caution.
Bitgo stated that Galaxy "contends differently and wants to redact some allegations before the complaint becomes publicly accessible."
Bitgo believes that the company owes $100 million in termination fees. Many crypto supporters have closely followed the story. One person responded to Bitgo’s Tuesday tweet with "Will be fascinating to see the details of these allegations."
What do you think Bitgo's lawsuit against Galaxy Digital over a alleged breached contract worth $100 million? Please comment below to let us know your thoughts on this topic.
By: Jamie Redman
Title: Bitgo Files Lawsuit Against Novogratz’s Galaxy Digital for $100M Over ‘Intentional Breach’ of a Merger Agreement
Sourced From: news.bitcoin.com/bitgo-files-lawsuit-against-novogratzs-galaxy-digital-for-100m-over-intentional-breach-of-a-merger-agreement/
Published Date: Wed, 14 Sep 2022 21:30:36 +0000
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