The US Court of Chancery in Delaware has largely dismissed a lawsuit by digital asset custodian BitGo after cryptocurrency investment firm Galaxy Digital abandoned its takeover bid for the company in 2022.
Vice Chancellor J. Travis Laster dismissed BitGo's complaint against Galaxy Digital with prejudice, according to court documents filed on June 9. Galaxy previously aborted its decision to acquire BitGo as part of a $1.2 billion deal in August 2022 after extensive efforts, citing breach of contract . BitGo subsequently filed a lawsuit against Galaxy, seeking $100 million in damages.
In his ruling, Laster said Galaxy had a “clean termination right” to the BitGo acquisition, in part because BitGo failed to provide certain financial statements in its efforts to go public in the United States. A Galaxy spokesperson told Cointelegraph that the company is “ pleased” with the court's decision to dismiss BitGo's claims. "The fact that there were no charges makes it reasonable to imagine that the exercise of the right to terminate was not consistent with the implied covenant of good faith and fair dealing," Rust said.
In a statement to Cointelegraph, a BitGo spokesperson said the company plans to appeal the decision and “continues to believe that Galaxy wrongly terminated the agreement.” The company also recently signed a non-binding letter of intent to acquire Fintech infrastructure provider Prime Tr ust. Galaxy Digital, run by Mike Novogratz, announced its intention to acquire BitGo in May 2021 as part of its US public offering. In 2022, however, the BitGo deal fell apart and the company disclosed $77 million in exposure to failed cryptocurrency exchange FTX , which declared bankruptcy in november.
