All the Details About Galaxy Digital and BitGo Recent Feud! BitGo and Galaxy Digital seemed to be busy on Monday. Suddenly both companies announced surprising decisions to the community.
Galaxy Digital Terminates An Agreement With BitGo
On August 15th, Galaxy Digital announced to the community the decision to terminate the acquisition of BitGo, a digital asset custodian. According to Galaxy Digital, the company has a right to terminate the agreement as BitGo failed to provide audited financial statements for 2021 by July 31st, 2022.
BREAKING: Galaxy Digital has terminated its acquisition of #crypto custodian BitGo
— Michael Wrubel (@michaelwrub) August 15, 2022
Previously, Galaxy Digital announced the plans to acquire BitGo in May 2021. Initially, the process would be complete by the end of this year. In addition, Galaxy Digital made an interesting statement in March regarding the acquisition.
Galaxy Digital stated, “A reverse termination fee of $100 million will be payable by Galaxy Digital to BitGo in certain circumstances if the transaction has not been completed by December 31st, 2022.”
However, with the recent development, it seems Galaxy Digital has changed its mind. As they mentioned, “No termination fee is payable in connection with the termination.”
BitGo Will Sue Galaxy Digital
After Galaxy Digital posted the decision online, BitGo published a blog post for the community to read. BitGo has hired litigation powerhouse, Quinn Emanuel, to pursue the legal action. BitGo has denied the allegations by Galaxy Digital.
According to R. Brian Timmons, a partner of Quinn Emanuel, the reason for the termination by Galaxy Digital and the blame on BitGo is absurd. He said, “BitGo has honored its obligations thus far, including the [delivery] of its audited financials. Either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith and faces damages of that much or more.”
After BitGo responded to the termination, Galaxy Digital has yet to give a full explanation again. The topic has been trending in the community as people wait for more information.