U.S. Court Dismisses BitGo’s Lawsuit Against Galaxy Digital
By BtcCasey In a recent development, a U.S. court has dismissed the lawsuit filed by BitGo against Galaxy Digital regarding a failed merger that had been agreed upon in 2021. BitGo, in response to the terminated merger agreement, alleged that Galaxy Digital had not fulfilled its obligations, stating their intention to hold the company legally accountable for its decision to terminate the merger. BitGo's lawyer added that Galaxy Digital owed them a promised $100 million termination fee or potentially faced damages of equal or greater value if found to be acting in bad faith.
Galaxy Digital, on the other hand, cited BitGo's failure to provide audited financial statements for 2021 that complied with the agreement's requirements as the basis for terminating the merger. According to court documents released on June 9, the court deemed this to be a valid reason for ending the merger, effectively voiding the termination fee.
In response to the court's decision, Galaxy Digital released a statement on Twitter expressing their satisfaction with the dismissal of BitGo's claims. They emphasized the need for collaboration, stating that it was time to focus on upgrading the global financial system in a manner that promotes innovation and safeguards the interests of investors and consumers.
Interestingly, BitGo made headlines recently with the announcement of its preliminary agreement to acquire Prime Trust, its primary competitor in the United States. While specific details about the merger have not been made public yet, speculation had been circulating within the industry about potential financial difficulties faced by Prime Trust. As a result, the agreement has been viewed as a positive development, averting the anticipated failure of another major firm. | 