BitGo has announced that it has taken legal proceedings against Galaxy Digital, as announced in an earlier statement some weeks ago. According to the custodian firm, it plans to sue Galaxy Digital in court, seeking about $100 million redress. The issue between companies started after Galaxy Digital announced that it was pulling out of an already agreed acquisition that would see the firm take over BitGo.
BitGo submitted the filing last night
According to the statement by BitGo, the filing was submitted to the court late last night, with the announcement today carrying every detail. The firm had planned to take the case to court immediately after the deal was canceled. In its statement, Galaxy Digital mentioned that the custodian firm failed to deliver the necessary documents that would have sealed the acquisition agreement on time. It requested an audited financial report for 2021, which was supposed to have been delivered by July 31. In its tweet, the custodian firm called Galaxy Digital’s act improperly saw the firm breach their earlier agreement of an acquisition.
Both companies wrestle over termination fee
In the statement, BitGo mentioned that the case was filed at the Chancery Court, which is located in Delaware. Brian Timmons, the attorney representing them in the case filing, also mentioned that the filing had been sealed. In his statement, Timmons mentioned that the sealing would help the company cross out any sensitive information in the file in the coming days. However, the company has mentioned that the file would be enabled for viewing after Thursday. Galaxy Digital had shaken hands in May 2021 with BitGo to take over the company in a deal worth $1.2 million.
The payment structure and every other detail had been agreed upon. However, a year after the announcement, there was no further announcement that the takeover had been completed, prompting questions from people across the market. It was not surprising when Galaxy Digital announced the deal’s cancellation. After the announcement, BitGo mentioned that a termination clause was set at $100 million, which Galaxy Digital denied vehemently. The company recently saw its revenue enter the red after it lost more than $554 million. This announcement was followed by the termination of the deal with BitGo.