BitGo, a custody provider, filed a lawsuit in Delaware against Galaxy Digital CEO Mike Novogratz. The suit stems from Galaxy’s rejection of the merger deal.
Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.
— BitGo (@BitGo) September 13, 2022
«[…] BitGo filed a lawsuit against Galaxy Digital, seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of the merger agreement», according to representatives of the custodian.
In spring 2021, media reported negotiations between Novogratz’s bank and BitGo regarding a takeover. Later the parties confirmed the information and disclosed the deal value — about $1.2 billion in stock and cash.
In August 2022, Galaxy Digital declined to acquire BitGo, citing BitGo’s prolonged financial reporting process. That same month, the latter threatened the bank with a lawsuit.
In the second quarter of 2022, Galaxy Digital amounted to $554.7 million.
Later, a group of bank executives, Genesis and Convex Trading, filed to register DBA Crypto Fund I LP for $500 million.
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