Crypto custodian BitGo has announced that it intends to sue Galaxy Digital for its improper decision to terminate the $1.2 billion merger agreement.
Galaxy informed BitGo of its decision on August 12 and also said that it does not intend to pay the $100 million reverse break fee it had promised back in March 2022.
BitGo hired the law firm, Quinn Emanuel, to sue Galaxy. R. Brian Timmons, a partner with Quinn Emanuel said, “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.”
He also said that BitGo has honored its obligations, including the delivery of audited financials.
However, a spokesperson for Galaxy said, “BitGo’s claims are without merit and we will defend ourselves vigorously. As previously stated, BitGo did not provide certain BitGo financial statements needed by Galaxy for its SEC filing. Galaxy’s Board of Directors then made the decision to exercise its contractual right to terminate.”
Mike Belshe, the founder and CEO of BitGo gave a statement saying that the company’s ‘business has continued to grow and its operational and strategic outlook remain strong.’ He further said that the company is bullish about its future.