• US court dismisses BitGo’s claims in $100M lawsuit against Galaxy Digital
• Galaxy Digital had a “clean termination right” to the acquisition of BitGo
• BitGo is planning to appeal the decision
US Court Dismisses BitGo’s Claims in $100M Lawsuit Against Galaxy Digital
The Delaware Court of Chancery in the United States has granted a motion from crypto investment firm Galaxy Digital largely dismissing digital asset custodian BitGo’s case following a dropped acquisition of the firm in 2022. According to court documents filed on June 9, Vice Chancellor J. Travis Laster dismissed BitGo’s complaint against Galaxy with prejudice, saying that Galaxy had a “clean termination right” to the acquisition, citing a breach of contract.
Galaxy Digital Had “Clean Termination Right”
Vice Chancellor J. Travis Laster said that Galaxy had a “clean termination right” to the acquisition based in part on BitGo’s failure to deliver certain financial statements as part of its efforts to go public in the United States. A spokesperson for Galaxy told Cointelegraph they were “pleased” with the court’s decision and urged all parties involved to focus on innovation and protecting investors and consumers alike.
BitGo Planning To Appeal Decision
A spokesperson for BitGo said that while they were disappointed with the ruling, they plan to appeal it, adding that they still believe that Galaxy wrongfully terminated their agreement. The company also recently signed a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust.
Background On Acquisition Attempt
Operated by Mike Novogratz, Galaxy Digital announced its intention to acquire BitGo in May 2021 as part of its public offering in the United States. However, after extensive effort by both companies, this deal fell apart and was eventually dropped by Galvay due largely due to significant exposure from failed crypto exchange FTX declaring bankruptcy earlier this year which amounted up tp $77 million dollars for Galvay overall losses across all platforms since 2022.
Despite being initially pleased with announcement back in 2021 with plans for an acquisition between these two firms, ultimately these plans never materialized due largely because of failed contractual obligations between both sides combined with huge losses suffered form FTX exchange declared bankrupty earlier this year. Despite being dissapointed with this outcome however, Bitgo still plans on appealing this decision and is currently working towards acquiring Fintech infrastructure provider Prime Trust instead