NewsletterBreaking: Galaxy Digital Wins in $1.2B Acquisition Lawsuit Against BitGo
American crypto investment and asset management firm, Galaxy Digital will be walking away unscathed in its legal battle with custody service provider, BitGo. According to reports, the case was dismissed, giving Galaxy Digital the much needed relief over the case.
BitGo filed the lawsuit against Galaxy Digital back in September last year following the failure of the latter to make good on the deal to acquire the former for $1.2 billion as agreed earlier. The latter firm backtracked on the deal at the time on account that BitGo failed to share its audited financial records as of July 31 last year.
The period of the negotiations also coincided with the heat of the crypto winter that saw the collapse of top crypto platforms including Celsius Network and Voyager Digital which fueled cautionary investments amongst firms. With the expectations the deal generated, BitGo sued the Mike Novogratz led firm for more than $100 million in damages.
With the ruling, Galaxy Digital will no longer be liable to pay any damages and it will be able to focus on its business moving forward.
“We’re pleased with the court’s decision to dismiss BitGo’s claims. Now is the time for all of us to work together and focus on the task at hand: Upgrading the global financial system in a manner that promotes innovation and protects investors and consumers alike,” Galaxy Digital said in a statement shared on Twitter.
Galaxy Digital vs BitGo: The Way Forward
The lawsuit and the way it ended appears acceptable to Galaxy Digital and moving forward from here appears straightforward. However, the case is not the same for BitGo who as of the time of writing has not commented on the court’s decisions on the matter.
As noted, the latest tweet from BitGo is the affirmation of its legality as a crypto custody service provider, a confirmation that appears necessary to prevent the bout of panic withdrawals that is typically characteristic of the volatile cryptocurrency ecosystem.
Whether or not BitGo will be appealing the case remains unknown, but for now, supporters of the Galaxy Digital firm appear elated for now.
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