BitGo to sue Galaxy Digital for $100 million over discontinued acquisition
"Either Galaxy owes BitGo a $100 million termination fee as promised, or it acted in bad faith and faced damage that much or more,” said R. Brian Timmons.
New
Digital asset custodian BitGo said it planned to seek more than $100 million in damages from Galaxy Digital, alleging the investment firm owed the funds as part of an "indemnity of reverse termination" in its decision to terminate an acquisition agreement.
In a blog post on Monday, BitGo called Galaxy's actions "inappropriate" in alleging breach of contract to abandon an agreement to acquire the digital asset custodian. BitGo has retained the services of law firm Quinn Emanuel to file a lawsuit against Galaxy for failing to pay "the $100 million reverse severance package it promised in March 2022". p>
According to Galaxy, BitGo did not provide audited financial statements for 2021 until July 31, 2022 as part of the acquisition agreement, a claim denied by Quinn Emanuel partner R. Brian Timmons:< /p>
"Mike Novogratz and Galaxy Digital's attempt to blame BitGo for the termination is absurd [...] Either Galaxy owes BitGo a $100 million termination fee as promised, or it acted in bad faith and faces damages of that or more."
Galaxy has announced its intention to acquire BitGo in May 2021 as part of a proposed IPO in the United States. After a delay at the end of the first quarter of 2022 in which Galaxy CEO Mike Novogratz said the company had "adjusted the deal", the acquisition was
"Either Galaxy owes BitGo a $100 million termination fee as promised, or it acted in bad faith and faced damage that much or more,” said R. Brian Timmons.
New
Digital asset custodian BitGo said it planned to seek more than $100 million in damages from Galaxy Digital, alleging the investment firm owed the funds as part of an "indemnity of reverse termination" in its decision to terminate an acquisition agreement.
In a blog post on Monday, BitGo called Galaxy's actions "inappropriate" in alleging breach of contract to abandon an agreement to acquire the digital asset custodian. BitGo has retained the services of law firm Quinn Emanuel to file a lawsuit against Galaxy for failing to pay "the $100 million reverse severance package it promised in March 2022". p>
According to Galaxy, BitGo did not provide audited financial statements for 2021 until July 31, 2022 as part of the acquisition agreement, a claim denied by Quinn Emanuel partner R. Brian Timmons:< /p>
"Mike Novogratz and Galaxy Digital's attempt to blame BitGo for the termination is absurd [...] Either Galaxy owes BitGo a $100 million termination fee as promised, or it acted in bad faith and faces damages of that or more."
Galaxy has announced its intention to acquire BitGo in May 2021 as part of a proposed IPO in the United States. After a delay at the end of the first quarter of 2022 in which Galaxy CEO Mike Novogratz said the company had "adjusted the deal", the acquisition was
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