A US court has dismissed a lawsuit filed by BitGo against Galaxy Digital in connection with a previously approved failed merger in 2021.
In the company response In the terminated merger agreement, BitGo alleged that Galaxy Digital failed to uphold its end of the deal, saying that the company “intends to hold Galaxy Digital legally liable for its incorrect decision to terminate the merger agreement,” while adding that a lawyer representing the company “either Galaxy owes to BitGo in termination fees of $100 million as promised or acted in bad faith and face damages of that amount or more.”
At the time of termination, Galaxy Digital cited BitGo’s failure to provide 2021 audited financial statements that complied with the requirements of the agreement. According to court documents released on June 9, this was “valid basisof the decision to terminate the merger, effectively eliminating the termination fee.
We are pleased with the court’s decision to dismiss BitGo’s allegations. a permit By Galaxy Digital on Twitter Read. “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.”
Just last week, it was announced that BitGo had reached an agreement in principle to acquire its main US competitor, Prime Trust. Although the details of this merger have not yet been announced, the industry has widely speculated in recent days that Prime Trust has run into financial trouble. As such, the agreement was made It is seen as a relatively good thingavoiding what many believe might be the next failure of another large company.
