A Delaware court in the United States has granted a request by crypto investment firm Galaxy Digital to largely dismiss the case of digital asset custodian BitGo after acquiring the company in 2022.
According to court documents filed on June 9, Deputy Counsel J. Travis Luster dismissed BitGo’s complaint against Galaxy Digital with prejudice. The decision came after Galaxy rescinded its decision to acquire BitGo in August 2022 as part of a $1.2 billion deal after extensive efforts, citing breach of contract. BitGo subsequently sued Galaxy, seeking $100 million in damages.
In its ruling, Luster said Galaxy had a “clean termination right” to acquire BitGo based in part on BitGo’s failure to provide certain financial data in its efforts to go public in the United States. A Galaxy spokesperson told Cointelegraph that the company is “delighted” with the court’s decision to dismiss BitGo’s allegations.
“There are no facts alleged that could make it reasonable to conceive that the exercise of the right of termination was inconsistent with the implied covenant of good faith and fair dealing,” Luster said.
We are pleased with the court’s decision to dismiss BitGo’s claims. Now is the time for all of us to come together and focus on the task at hand: upgrading the global financial system in a way that fosters innovation and protects investors and consumers alike. pic.twitter.com/xPrMP8AghW
– Galaxy (@galaxyhq) June 12, 2023
Related: Galaxy Digital is teetering on profit after a net loss of $1 billion in 2022
Galaxy Digital, managed by Mike Novogratz, has announced its intention to acquire BitGo in May 2021 as part of its US public offering. bankruptcy in November.
It is not clear what legal avenues BitGo may have following the Delaware court’s decision. Cointelegraph has reached out to BitGo’s legal advisor, but has not received a response at the time of publication.
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