Crypto Custody Firm BitGo to Sue Galaxy Digital for Abandoning $1.2B Merger Agreement

BitGo said Galaxy owes it a $100 million breakup fee.

AccessTimeIconAug 15, 2022 at 4:45 p.m. UTC
Updated May 11, 2023 at 5:38 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrency custody company BitGo said Monday it plans to sue Galaxy Digital for backing out of the firms' $1.2 billion merger agreement.

BitGo, which is one of the biggest custodians in the crypto industry, said it will seek $100 million in damages from Galaxy. In a press release, it said Galaxy is refusing to pay this previously promised breakup fee.

“The attempt by Mike Novogratz and Galaxy Digital to blame the termination on BitGo is absurd,” said R. Brian Timmons, a partner with Quinn Emanuel, the law firm BitGo has retained. Novogratz is Galaxy's CEO.

In the press release, Timmons pointed to Galaxy's recent losses, which he said range in the hundreds of millions of dollars.

"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,” Timmons said.

A spokesperson for Galaxy told CoinDesk that the company believes "BitGo's claims are without merit and we will defend ourselves vigorously. As previously stated, BitGo did not provide certain BitGo financial statements needed by Galaxy for its SEC filing. Galaxy's Board of Directors then made the decision to exercise its contractual right to terminate."

UPDATE (August 15, 19:41 UTC): Added response from Galaxy.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Danny Nelson

Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.