Digital asset custodian BitGo has filed a lawsuit against Mike Novogratz’s cryptocurrency investment firm Galaxy Digital for ending its acquisition of the former.
BitGo took to Twitter on Tuesday to to announce the details of its lawsuit against Galaxy after the latter terminated the $1.2 billion acquisition deal with BitGo in mid-August.
Presented on Monday lawsuit seeks more than $100 million in damages, accusing Galaxy of “improper repudiation” and “willful violation” of its acquisition agreement with BitGosaid the firm.
BitGo said it filed the lawsuit with the Delaware Chancery Court, stressing that court documents are expected to be made public on Thursday night. This is in “an abundance of caution” in case the Galaxy want to “draft some of the allegations before the lawsuit goes public.”BitGo noted in a tweet.
As previously reported, Galaxy ended the BitGo acquisition on August 15. The company argued that it exercised its right to leave the deal in line with the merger agreement after BitGo failed to deliver audited financial statements for 2021.
Novogratz, CEO of Galaxy, said it was moving forward with its listing on Nasdaq in the United States.. Galaxy also stated that they plan to vigorously defend the firm in a possible case, as Galaxy believed BitGo’s claims were “meritless.”
BitGo and Galaxy did not immediately respond to Cointelegraph’s request for comment.
The news comes amid BitGo continuing to develop more products and services. The company on Tuesday announced the launch of its Wealth Management platform, with the aim of allowing registered investment advisers and broker-dealers direct access to digital assets.
Founded in 2013, BitGo is one of the world’s leading digital currency firms that focuses exclusively on serving institutional clients, providing custody, liquidity and security solutions. Last year, the company declared more than $64 billion in assets under custody.
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