The crypto sector’s first $1bn deal, which was announced during the market highs last year and would have seen Galaxy Digital acquire crypto custodian BitGo for $1.2bn, has been terminated. BitGo is now seeking $100m in damages in wake of the failed agreement.
egy sajtóközlemény issued yesterday, BitGo stated that it “intends to hold Galaxy Digital legally responsible for its improper decision to terminate the merger agreement with BitGo, which was not scheduled to expire until December 31, 2022, at the earliest and to not pay the $100 million reverse break fee it had promised back in March 2022”.
Following this, BitGo has hired litigation powerhouse Quinn Emanuel Urquhart & Sullivan, LLP to take appropriate legal action. A representative from the firm, R. Brian Timmons, was quoted as saying: “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”.
On Monday, Galaxy Digital announced its plans to terminate the proposed acquisition citing that BitGo failed to provide audited financial statements for 2021 by July 31, 2022, as part of the acquisition agreement. Galaxy originally announced that it was acquiring BitGo in May 2021 as part of plans to go public in the United States. The acquisition was expected to go through between Q2 and Q4 2022.
