BitGo sues Galaxy Digital for acquisition breach, seeks $100M in damages

Digital asset custodian BitGo has filed a lawsuit towards Mike Novogratz’s cryptocurrency funding agency Galaxy Digital for terminating the previous’s acquisition.

BitGo took to Twitter on Tuesday to disclose particulars of its lawsuit towards Galaxy after the latter terminated the $1.2 billion acquisition take care of BitGo in mid-August.

Filed on Monday, the lawsuit seeks greater than $100 million in damages, accusing Galaxy of “improper repudiation” and “intentional breach” of its acquisition settlement with BitGo, the agency mentioned.

BitGo mentioned they filed the lawsuit with Delaware Chancery Courtroom, stressing that the court docket paperwork are anticipated to turn out to be public on Thursday night. That’s in “an abundance of warning” within the occasion Galaxy desires to “redact a few of the allegations earlier than the grievance turns into public,” BitGo famous in a tweet.

As beforehand reported, Galaxy terminated the BitGo acquisition on Aug. 15. The corporate argued that it exercised its proper to drop the deal in keeping with the merger settlement after BitGo didn’t ship audited monetary statements for 2021.

Galaxy CEO Novogratz mentioned that it was nonetheless pursuing its path to the USA itemizing on Nasdaq. Galaxy additionally acknowledged that they plan to vigorously defend the agency in a possible case as Galaxy believed that BitGo’s claims have been “with out advantage.”

Each BitGo and Galaxy declined to offer extra feedback concerning the lawsuit to Cointelegraph.

Associated: CleanSpark acquires mining facility in Georgia for $33 million

The information comes amid BitGo persevering with to develop extra services. The corporate on Tuesday announced the launch of its Wealth Administration platform, aiming to permit registered funding advisors and broker-dealers to have direct entry to digital belongings.

Based in 2013, BitGo is a serious world digital foreign money agency focusing completely on serving institutional shoppers, offering custody, liquidity, and safety options. Final 12 months, the agency reported over $64 billion in belongings beneath custody.

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