BitGo sues Galaxy Digital for acquisition breach, seeks $100M in damages

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BitGo continues developing new products despite merger issues with Galaxy Digital, launching the Wealth Management platform on Tuesday.

Digital asset custodian BitGo has filed a lawsuit against Mike Novogratz’s cryptocurrency investment firm Galaxy Digital for terminating the former's acquisition.details of its lawsuit against Galaxy after the latter terminated the $1.2 billion acquisition deal with BitGo in mid-August.

Filed on Monday, the lawsuit seeks more than $100 million in damages, accusing Galaxy of “improper repudiation” and “intentional breach” of its acquisition agreement with BitGo, the firm said. BitGo said they filed the lawsuit with Delaware Chancery Court, stressing that the court documents are expected to become public on Thursday evening. That is in “an abundance of caution” in the event Galaxy wants to “redact some of the allegations before the complaint becomes public,” BitGo noted in a tweet.on Aug. 15. The company argued that it exercised its right to drop the deal in line with the merger agreement after BitGo failed to deliver audited financial statements for 2021.

Galaxy CEO Novogratz said that it was still pursuing its path to the United States listing on Nasdaq. Galaxy also stated that theyBitGo and Galaxy did not immediately respond to Cointelegraph’s request for comment.

 

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