U.S. Court Dismisses BitGo’s Lawsuit Against Galaxy Digital

A U.S. court has dismissed the lawsuit filed by BitGo against Galaxy Digital in relation to a failed merger previously agreed to in 2021.

In the company’s response to the terminated merger agreement, BitGo had alleged that Galaxy Digital failed to uphold their end of the bargain, saying the company “intends to hold Galaxy Digital legally responsible for its improper decision to terminate the merger agreement,” with a lawyer representing the company adding that “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.”

At the time of termination, Galaxy Digital cited BitGo’s failure to deliver audited financial statements for 2021 that complied with the requirements of the agreement. According to court documents released June 9, this was a “valid basis” for the decision to end the merger, and it effectively voided the termination fee.

“We’re pleased with the court’s decision to dismiss BitGo’s claims,” A statement made by Galaxy Digital on Twitter read. “Now is the time for all of us to work together and focus on the task at hand: Upgrading the global financial system in a manner that promotes innovation and protects investors and consumers alike.”

Just last week, it was announced that BitGo reached a preliminary agreement to acquire its primary U.S. competitor, Prime Trust. Although the details of that merger have not yet been made public, the industry had widely speculated in recent days that Prime Trust faced financial troubles. As such, the agreement has been seen as a relatively good thing, avoiding what many thought may be a coming failure of another large firm.

12 June 2023 21:44