BitGo is pursuing at least $100 million in damages from Galaxy Digital after the collapse of what would have been one of the largest acquisitions in the crypto custody space. The deal, originally valued at $1.2 billion, was announced in May 2021 with considerable fanfare. It died roughly 15 months later, and now both companies are locked in a legal fight that has already bounced through multiple courts.
Here’s the thing: while these two firms are actively suing each other, they also announced a staking partnership in February 2025. Corporate relationships in crypto are, if nothing else, complicated.
How a billion-dollar deal fell apart
Galaxy Digital and BitGo revealed the proposed acquisition on May 5, 2021. At the time, the deal looked like a logical consolidation play, combining Galaxy’s trading and investment management operations with BitGo’s institutional-grade custody platform.
Then came the crypto winter.
