After calling off the acquisition, BitGo is determined to take Galaxy Digital to court.
BitGo, a California-based institutional digital asset platform established in 2011, announced its plans to take Galaxy Digital, a crypto-focused financial service company, to court after the latter dropped out of plans to acquire BitGo.
The exchange of blog posts on the company's positions surfaced on August 15th. Firstly, Galaxy Digital shared a press release, stating that the company is terminating its acquisition agreement.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)
According to the statement, BitGo failed to provide “audited financial statements for 2021”. Therefore, the company hasn't completed one of the requirements, and thus, no termination fee should be paid.
BitGo disagreed with this statement and posted its own response in the blog post. The company claims that it has provided the data of its audited financials to Galaxy Digital. Moreover, the digital asset platform claims that Galaxy Digital is the problem. BitGo notes Galaxy's quarterly losses and downfall of stocks.
To take this matter into court, BitGo has hired “litigation powerhouse” Quinn Emanuel to take any legal actions necessary.
In the blog post, a Quinn Emanuel partner, R. Brian Timmons commented on the issue stating:
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.
Back in May of 2021, Galaxy announced its plans to acquire BitGo as one of the ways to become available in the United States. The estimated worth of the deal was $1.2 billion.
At first, the acquisition was supposed to go through in the first quarter of 2022, however, that didn’t happen. According to Galaxy’s CEO Mike Novogratz, the company has “adjusted the deal”. Afterward, it was expected that the deal will be fully settled between the second and fourth quarters of 2022.