BitGo, a Cryptocurrency custody company, announced Monday that it intends to sue Galaxy Digital for breaching the firm’s $1.2 billion merger agreement.
BitGo, one of the largest Cryptocurrency custodians, has stated that it will seek $100 million in damages from Galaxy. According to a press release, Galaxy is refusing to pay the previously promised breakup fee.
Mike Novogratz and Galaxy Digital’s bid to hold BitGo accountable for the termination is ridiculous, stated R. Brian Timmons – a partner at Quinn Emanuel, the law firm hired by BitGo. Galaxy’s CEO is Novogratz.
Timmons mentioned Galaxy’s recent losses, which he said were in the hundreds of millions of dollars, in the press release.
Either Galaxy owes BitGo the promised $100 million termination fee, or it has acted in bad faith and faces damages of that amount or more, Timmons said.
According to a Galaxy spokesperson, the company believes BitGo’s claims are unfounded, and we will vigorously defend ourselves. As previously stated, BitGo did not provide certain BitGo financial statements required by Galaxy for its SEC filing. Galaxy’s Board of Directors then decided to exercise its contractual right to terminate.
