BitGo sues Galaxy Digital over merger deal breach

Cryptocurrency custody firm BitGo has filed a lawsuit against Galaxy Digital, a crypto financial services firm.

In a statement shared on Twitter, BitGo alleged that Galaxy Digital purposefully backed out of the companies’ planned $1.2bn merger. The plaintiff seeks $100m in damages.

The complaint was filed with the Delaware Chancery Court, which is due to be made public on Thursday, September 15.

This complaint follows a previous announcement by the company to seek legal recourse against Galaxy Digital, dubbing termination of the deal “absurd”.

Galaxy Digital believes that the complaint has no legal standing and is without merit. Galaxy’s decision to renege on the deal was linked to a broader reorganization of the business which was, at the time, pending approval from the US Securities and Exchange Commission.

Meanwhile, Galaxy Digital remains confident that it can overcome short-term turbulence and then proceed with a successful listing on NASDAQ. The company is already traded on the Toronto Stock Exchange.

Lawsuits are not at all that uncommon in the cryptocurrency industry. Most major companies are facing one, including Coinbase, which is dealing with a class-action lawsuit alleging poor security of customer accounts.

Galaxy is still struggling with its financial performance, with net loss reaching $554.7m during the second quarter.

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Written by Alex

Reporter

Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.

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