Referring to Galaxy Digital’s actions, R. Brian Timmons said, “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.”
Crypto firm Galaxy Digital announced the company is terminating a $1.2B proposal to acquire digital asset trust platform BitGo in what could have been the biggest acquisition deal in crypto history. In response, BitGo threatened to sue Galaxy Digital with a $100M lawsuit.
The announcement came just a week after Galaxy Digital reported a net loss of $554.7M in Q2 2022, owing to the downswing in the crypto market.
Galaxy Digital cited BitGo’s failure to timely deliver its audited financial statements for 2021 as the reason for abandoning the acquisition proposal.
Furthermore, Galaxy Digital claimed that BitGo’s failure to provide these records by July 31 clearly violated the terms the two firms agreed on last year. Galaxy Digital also stated that it was not liable to pay any termination fee.
BitGo responded to this announcement by threatening to file a $100M lawsuit against Galaxy Digital for its improper actions. BitGo further states that the expiry on the acquisition deal was until December 31 and that Galaxy Digital failed to pay BitGo the agreed-upon $100M fee to “extend the merger agreement.”
