Galaxy Digital terminates deal with BitGo

Digital asset and blockchain organization Galaxy Digital is ending its agreement to acquire crypto broker BitGo.

On Monday, August 15, Galaxy said that the deal had fallen through, and it will not be paying a termination fee due to BitGo’s “failure to deliver audited financial statements for 2021”.

Galaxy Digital CEO Mike Novogratz said: “Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the US and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions.”

The original deal to buy BitGo was announced in May 2021 and valued at roughly $1.2bn.

BitGo said on Monday that legal action will be taken against Galaxy Digital for its “improper decision” to terminate the merger agreement.

Quinn Emanuel lawyer R. Brian Timmons said: “The attempt by Mike Novogratz and Galaxy Digital to blame the termination on BitGo is absurd. Either Galaxy owes BitGo a $100m termination fee as promised or it has been acting in bad faith and faces damages of that much or more.”

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Updated: 08/16/2022 — 16:00