BitGo files a $100 million lawsuit against Galaxy Digital
BitGo, a company that secures and trusts digital assets, is being sued by Galaxy Digital for abandoning a previously announced takeover agreement.
The firm filed the lawsuit in response to Galaxy Digital's most recent decision to call off the merger.
BitGo is requesting damages of more than $100M.
The move was announced on Tuesday by BitGo's official Twitter account. The complaint was brought on Monday after Galaxy Digital's statement, according to the tweet. Through the case, the corporation is seeking damages in excess of $100M.
BitGo pointed out that the decision made by Galaxy Digital will not be without consequences for the company. As an intentional violation of its merger agreement with BitGo, it said, the termination of the acquisition agreement is a "improper repudiation."
In the Delaware Court of Chancery, the company filed the lawsuit. Galaxy Digital, however, thinks that some of the information in the lawsuit ought to be kept private. As a result, Galaxy has expressed a desire to alter the information and accusations before making them public.
Last month, Galaxy Digital canceled the $1.2 billion acquisition agreement.
Last month, Mike Novogratz's Galaxy Digital canceled its $1.2 billion acquisition of BitGo. The company highlighted that there was a breach of contract, as was revealed in a press release. Galaxy showed that BitGo missed the July 31 deadline for submitting its audited 2021 financial records.
In May 2021, Galaxy Digital made plans to buy the company public. The purchase agreement would support Galaxy's efforts to go public. Part of the conditions of the transaction awarded current owners of BitGo a 10% stake on the new corporation. In addition, Galaxy Digital intended to keep the majority of BitGo's current staff.
Despite this, there were several delays with the merger. By year's end, as originally anticipated, Galaxy later canceled the agreement. Galaxy stated that despite the termination, it still had plans to go public in the US.
