BitGo drags Galaxy Digital to court over failed acquisition

BitGo has announced that it has started legal proceedings against Galaxy Digital, as announced in a previous statement a few weeks ago. According to the trust company, he plans to sue Galaxy Digital in court, seeking about $100 million in compensation.

Troubles between the companies started after Galaxy Digital announced it was pulling out of a previously agreed acquisition that would see the company take over BitGo.

BitGo sent the documentation last night

According to BitGo, the application was filed in court last night, with today’s announcement bringing all the details. The company had planned to take the case to court as soon as the deal was overturned. In its statement, Galaxy Digital stated that the custodian failed to provide the necessary documents that would seal the purchase agreement in a timely manner.

BitGo drags Galaxy Digital to court over failed acquisition

He requested audited financial statements for 2021, which are due on July 31. In their tweet, a trust company called Galaxy Digital mistakenly saw that the company violated their previous acquisition agreement.

The two companies are fighting over the cost of the layoffs

In its statement, BitGo stated that the case was filed in the Delaware Chancery Court. Brian Timmons, the attorney who represented him in filing the lawsuit, also mentioned that the filing was sealed.

In his statement, Timmons said that unsealing would help the company edit sensitive information on files in the coming days. However, the company does mention that the file will be available for review after Thursday. Galaxy Digital partnered with BitGo in May 2021 to acquire the company in a $1.2 million deal.

The payment structure and all other details have been agreed. However, a year after the announcement, there have been no further reports on the completion of the acquisition, which raised questions from people across the market. It was no surprise when Galaxy Digital announced the cancellation of the deal.

Following the announcement, BitGo mentioned that the termination clause was set at $100 million, which Galaxy Digital vehemently denied. The company recently saw sales slip into the red after losing more than $554 million. This announcement was followed by the termination of the BitGo deal.