Roughly four years after Galaxy Digital planned to acquire BitGo, the two crypto firms faced off in court this week as their legal battle over the failed merger drags on, according to Bloomberg.
BitGo is requesting that Galaxy, ran by billionaire CEO and founder Michael Novogratz, pay at least $100 million for backing out of a transaction once worth $1.2 billion. In August 2022, Galaxy Digital terminated its acquisition of BitGo.
In court, BitGo "claims Galaxy failed to use reasonable efforts to get the deal done and hid from it details of probes by U.S. authorities that likely would have impacted their ability to complete the merger," according to Bloomberg.
When Galaxy quit the deal in 2022 the company said it did so because of BitGo's "failure to deliver, by July 31, 2022, audited financial statements for 2021 that comply with the requirements of our agreement." At the time Galaxy also said that it didn't need to pay a termination fee.
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