BitGo Sues Galaxy Digital for Canceling $1.2 B Deal

by in Cryptocurrency News

BitGo Galaxy Digital

BitGo, a crypto company based in California is going to sue investment manager Galaxy Digital for calling off a $1.2 bln purchase deal. Galaxy says the reason for the step is that BitGo didn’t present audited financial reports for 2021 that meet the demands of the deal. The company added they won't pay any termination fee.

Related: BitGo Now Holds Assets Worth 16 B

Reacting to the publication, BitGo said they plan to seek compensation of over $100 M. The company also noted that the deal wasn’t set to expire sooner than Dec. 31. This March, Galaxy guaranteed a $100 M reserve break compensation to BitGo for extending the deal.

The BitGo team hired experts from the law firm Quinn Emanuel to start legal actions. Lawyer Brian Timmons said Galaxy’s move to blame BitGo for the canceled deal is absurd. According to him, BitGo has fulfilled its responsibilities which includes the delivery of the documents. Timmons mentioned that last quarter Galaxy unveiled a $550 M loss.

The canceled agreement was to be the first $1 bln deal in the crypto space. With the merger, Galaxy would expand its offerings to large investors.