The digital asset investment and financial management firm, Galaxy Digital, has called off its $1.2 billion deal to acquire BitGo. Had it been successful, it would have become one of the largest deals in the history of the crypto industry.
BitGo is a digital assets trust company that is based in Palo Alto, California. It offers a multi-signature digital wallet service to the users. Moreover, Galaxy is liable to pay no termination fees in connection with the deal being canceled.
According to Galaxy Digital, BitGo failed to provide complete audited financial statements for 2021 which resulted in Galaxy calling off the deal. In the words of Mike Novogratz, the CEO and founder of Galaxy Digital, “Galaxy remains positioned for success and to take advantage of strategic opportunities to grow sustainably. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions.”
Now, BitGo is planning to sue Galaxing Digital for abandoning the deal. It is all set to claim $100 million in damages. According to BitGo, Galaxy Digital is refusing to pay the breakup fees that it has previously promised.
R. Brian Timmons, a partner with the Law Firm representing BitGo claims, “The attempt by Mike Novogratz (Galaxy Digital’s CEO) and Galaxy Digital to blame the termination on BitGo is absurd.”
He further added, “either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith. It will have to face damages of that much or more.”