Digital assets custodian BitGo on Monday filed a $100 million lawsuit against investment management firm Galaxy Digital for failing to fulfill its acquisition. The complaint will be available to the public on Thursday evening.
BitGo Sues Galaxy Digital
The custodian noted in a Twitter thread shared on Tuesday that it is suing Galaxy Digital for “improper repudiation and intentional breach of its merger agreement,” which was initiated in May 2021. BitGo hired the law firm, Quinn Emanuel, to aid its legal battle.
The crypto custody firm mentioned that the complaint filed in the Delaware Court of Chancery will be shared with the public on Thursday evening. However, the investment management company needs to “redact some of the allegations before the complaint becomes public.”
Brian Timmons, Partner at Quinn Emanuel, acknowledged that the crypto custodian firm had nothing to hide in the complaint, where he said:
“Although BitGo does not believe that the complaint contains any confidential information, it was filed in Delaware Chancery Court under seal in an abundance of caution in the event.”
Galaxy Digital Terminates $1.2B Acquisition Plan
In May 2021, Galaxy Digital agreed to acquire the digital assets custodian firm for $1.2 billion, as part of its plans to grow its geographic reach in the United States. The investment manager expended $265 million in cash and 33.8 million in shares to cater to the acquisition.
Per the agreement, Galaxy Digital would hold 90% of BitGo’s entire shares, while the remaining 10% would go to BitGo shareholders.
Last month, however, the investment management firm canceled the acquisition plan, while stating that “no termination fee is payable in connection with the termination.”
Mike Novogratz, the founder of Galaxy Digital, stated that his company will still achieve its intended geographic expansion, even with the cancellation of the BitGo acquisition.
“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions,” he said.
Meanwhile, Galaxy Digital has not commented on the latest lawsuit by the crypto custodian firm.
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Source: https://coinfomania.com/bitgo-files-100m-lawsuit-against-galaxy-digital/