BitGo has made good on a promise to sue Galaxy Digital for abandoning its plan to buy the crypto asset custody and management company for $1.2 billion.
In a lawsuit filed Tuesday, BitGo accused the crypto financial services company of “improper repudiation and intentional breach of its merger agreement. BitGo said it is seeking more than $100 million in damages.
Galaxy Digital hit back, saying in a statement that BitGo’s claims are “without merit and we will defend ourselves vigorously.”
Galaxy reaffirmed that the company abandoned its acquisition bid because BitGo “did not provide certain BitGo financial statements needed by Galaxy for its SEC filing,” a spokesperson said in an email.
Galaxy Digital had said that it “exercised its right to terminate” the deal, originally struck in May 2021, after BitGo failed to deliver 2021 financial records “that comply with the requirements of our agreement.” The company also said no termination fee has to be paid. BitGo denied Galaxy Digital’s claim. Brian Timmons, a partner with Quinn Emanuel who represents BitGo, called Galaxy Digital’s bid to “blame the termination on BitGo absurd.”
The legal battle illustrates how complicated rypto merger deals can become in an industry where some players have been criticized for a lack of financial transparency.
The legal complaint was filed under seal in the Delaware Court of Chancery. Timmons said BitGo “does not believe that the complaint contains any confidential information,” but it was filed under seal “in an abundance of caution in the event Galaxy contends otherwise and wishes to redact some of the allegations before the complaint becomes public.”
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