Galaxy Digital and BitGo Court Battle Intensifies Over $100 Million Failed Merger Claim

The legal dispute between Galaxy Digital and crypto custody firm BitGo has moved back into court, nearly four years after their planned $1.2 billion merger collapsed.

BitGo is seeking at least $100 million from Galaxy Digital, arguing the company wrongfully walked away from the acquisition agreement in 2022. The dispute centers around a reverse break fee that BitGo claims it is owed after the deal failed to close.

Galaxy Digital, founded by Michael Novogratz, ended the acquisition in August 2022, stating that BitGo failed to provide audited 2021 financial statements by the agreed deadline of July 31. At the time, Galaxy argued that the missing documents violated the merger terms and said it was not required to pay any termination fee.

BitGo Claims Galaxy Failed to Complete the Deal

During court proceedings, BitGo argued that Galaxy did not make reasonable efforts to finalize the acquisition. The company also alleged that Galaxy failed to disclose details related to investigations by US authorities that could have affected the merger process.

Failed $1.2 Billion Crypto Deal Still Creates Legal Pressure

The acquisition was first announced in May 2021 and was expected to strengthen Galaxy’s crypto infrastructure business. Under the original agreement, BitGo CEO Mike Belshe was expected to join Galaxy as deputy chief executive and board member.

The court battle could determine whether Galaxy must pay the disputed $100 million fee or face additional legal damages.