Galaxy Digital had announced Monday that it will not acquire BitGo, as it had previously planned. This was due to the “failure of deliver, by July 31, 2022 audited financial reports for 2021 that conform with the requirements of the agreement.” BitGo later called the decision “improper” but stated that it would pursue legal action and seek damages of more than $100 million.
BitGo has reacted to Galaxy Digital’s announcement of Monday that it had canceled its plans to acquire crypto custody company Cryptocustody.
BitGo shared a statement with The Block that it intended to sue Galaxy Digital for “its improper decision to terminate its merger agreement with BitGo which was not due to expire until December 31, 2022 at the earliest” and not paying the $100 million reverse fee it promised in March 2022 to incent BitGo to extend the merger.
According to BitGo’s press release, Quinn Emanuel has been retained by BitGo. Partner R. Brian Timmons stated in a statement that “The attempt of Mike Novogratz to blame the termination upon BitGo is absurd.”
BitGo stated that it would seek $100 million in fees or more in legal damages.
Galaxy reported that it had terminated its contract due to “failure of delivery, by July 31, 2022. Audited financial statements 2021 that conform to our agreement.”
The firm added that there is no termination fee.
Galaxy Digital announced last year that it would acquire BitGo for $1.2billion. The Block reported in March that the terms of this deal were being renegotiated.