BitGo to Sue Galaxy Digital for $100M Termination Fee

BitGo to Sue Galaxy Digital for $100M Termination Fee

Key Takeaways

Galaxy Digital announced today that it was ending its merger agreement with BitGo today.
BitGo intends to sue Galaxy, arguing the investment firm owes it a $100 million termination fee.
Galaxy suffered a $554 loss in the last financial quarter.

Share this article

Institutional crypto services company BitGo intends to seek legal action against crypto investment firm Galaxy Digital for refusing to pay a $100 million termination fee for abandoning its acquisition plans.

“BitGo Has Honored its Obligations Thus Far”

BitGo has announced it intends to sue Galaxy Digital for terminating their acquisition agreement.

The institutional digital asset services company stated today that it intends to hold Galaxy legally responsible for seeking to end its merger agreement with BitGo without paying a previously promised $100 million termination fee.


Galaxy Digital, the billion-dollar investment and trading firm run by Mike Novogratz, declared its intention to acquire BitGo for $1.2 billion in May 2021. According to BitGo, Galaxy promised the company a $100 million reverse break fee when it sought to extend the merger agreement in March 2022. Galaxy, however, announced earlier today that it would terminate the agreement without paying any termination fee, citing BitGo’s alleged failure to deliver audited financial statements.

“The attempt by Mike Novogratz and Galaxy Digital to blame the termination on BitGo is absurd,” stated Quinn Emanuel partner R. Brian Timmons, who has been hired by BitGo for the purpose of litigation. “BitGo has honored its obligations thus far, including the delivery of its audited financials… Either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith and faces damages of that much or more.”

Timmons further suggested that the deal termination may be due to Galaxy’s recent financial troubles. The investment firm disclosed a $554 million loss in the second quarter of the year, which was partially caused by the implosion of the Terra ecosystem, of which Novogratz was a strong backer. 

Galaxy indicated that it remains committed to its reorganization plans and subsequent Nasdaq listing. The firm launched a share repurchase program in May.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source link


Be the first to comment

Leave a Reply

Your email address will not be published.