BitGo wants to sue Galaxy Digital for $100 million over failed takeover

The American BitGo, a custodian for digital assets, intends to sue Mike Novogratz’s Galaxy Digital for 100 million dollars. The reason for the possible start of the lawsuit is the failed acquisition of BitGo. According to the custodian, Galaxy Digital has decided to stop the acquisition for the wrong reasons.

Galaxy Digital breach of contract

In a blog post on Monday, BitGo claims that Galaxy Digital has committed a breach of contract by dropping the acquisition agreement. In response, BitGo has now engaged the law firm Quinn Emanuel to take legal action against Galaxy Digital. According to BitGo, Galaxy Digital has pledged $100 million by March 2022 in case the deal does not go through.

Galaxy Digital disagrees with BitGo’s reading. They claim that BitGo has failed to fulfill its contract obligations by not sharing its 2021 annual figures with Galaxy Digital before July 31. A claim sued by Quinn Emanuel partner R. Brian Timmons has been refuted. “The attempt by Mike Novogratz and Galaxy Digital to push the termination of the deal on BitGo is absurd,” the lawyer said.

Takeover talks have been ongoing since May 2021

Galaxy Digital announced plans to acquire BitGo in May 2021 as part of a larger plan to go public. In the first quarter of 2022, the news came out that the acquisition had been postponed for the time being. According to Mike Novogratz, it was important to make some adjustments and the deal should take place between the second and fourth quarters of 2022.

“We are convinced that BitGo’s claims are unfounded and will defend ourselves tooth and nail,” said a representative of Galaxy Digital opposite Cointelegraph. According to Galaxy Digital, its board rightly decided to abort the deal because BitGo did not share its 2021 annual figures on time. It’s unclear at this point whether the poor market might also be a factor in Galaxy Digital’s decision.

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