BitGo intends to receive compensation from Galaxy Digital for the termination of the merger agreement

BitGo alleges that it is owed a $100 million merger termination fee with Galaxy Digital and intends to defend its interests in court.

BitGo is preparing to sue Galaxy Digital for terminating the acquisition of the company and seek compensation in the amount of $100 million. To this end, the BitGo custodial service operator has hired the law firm Quinn Emanuel, which has become an authorized representative to protect the interests of the company in the judiciary.

“The attempt by Mike Novogratz and Galaxy Digital to accuse BitGo of breach of duty is absurd. BitGo has fulfilled its obligations, including the provision of audited financial statements. It is common knowledge that Galaxy posted a loss of $550 million for the first half of the year, and the value of its shares is falling. In addition, Galaxy, like Novogratz, suffered losses from the collapse of Luna. Galaxy owes a $100 million termination fee to BitGo or is acting in bad faith. Then she faces a legal claim and damage for an even greater amount, ”said a BitGo legal representative.

BitGo called Galaxy’s decision to terminate the merger agreement “wrong”, noting that under previously agreed terms, the deal could not have ended before December 31st. Because Galaxy made the wrongful decision to terminate the agreement, BitGo intends to hold Mike Novogratz’s company legally liable.

“We consider BitGo’s claims to be unfounded and will defend ourselves,” a spokesperson for Galaxy said.

As Galaxy Digital previously reported, the decision to terminate the deal was made by the company’s board of directors after BitGo “failed to submit audited financial statements for 2021 that meet the requirements of the agreement by July 31” and Galaxy needed to file an application with the SEC.