Home CryptocurrencyAltcoin BitGo is suing Galaxy Digital for breach of acquisition and seeking $100 million in damages

BitGo is suing Galaxy Digital for breach of acquisition and seeking $100 million in damages

by SuperiorInvest

Digital asset manager BitGo has filed a lawsuit against Mike Novogratz’s cryptocurrency investment firm Galaxy Digital over the termination of the former’s acquisition.

BitGo on Twitter on Tuesday reveal details of its lawsuit against Galaxy after the company terminated its $1.2 billion acquisition deal with BitGo in mid-August.

The suit, filed on Monday, seeks more than $100 million in damages and accuses Galaxy of “improper repudiation” and “willful breach” of its acquisition agreement with BitGo, the firm said.

BitGo said it had filed a lawsuit in Delaware Chancery Court, stressing that court documents were expected to be released Thursday evening. This is in “an abundance of caution” in case Galaxy wants to “redact some of the allegations before the complaint becomes public,” BitGo noted in a tweet.

As previously reported, Galaxy has closed its acquisition of BitGo on August 15. The company argued that it had exercised its right to terminate business pursuant to the merger agreement after BitGo failed to deliver audited financial statements for 2021.

Galaxy CEO Novogratz said it is still on its way to a US listing on the Nasdaq stock exchange. Galaxy also stated that they a plan to vigorously defend the firm in a potential case where Galaxy believed that BitGo’s claims were “baseless.”

BitGo and Galaxy did not immediately respond to Cointelegraph’s request for comment.

Related: CleanSpark acquires Georgia mining facility for $33 million

This news comes as BitGo continues to develop other products and services. Company on Tuesday he announced the launch of a Wealth Management platform that aims to enable registered investment advisors and broker-dealers to directly access digital assets.

Founded in 2013, BitGo is a major global digital currency company focused exclusively on serving institutional clients and providing custody, liquidity and security solutions. Last year, the company reported over $64 billion in assets under management.

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