- They will not receive compensation for canceling the deal
- Previously, BitGo demanded $100 million from Galaxy Digital
Delaware state court rejected BitGo’s lawsuit against Galaxy Digital and denied monetary compensation.
Recall that the reason for the dispute was the termination of the deal between Galaxy Digital and BitGo for $ 1.2 billion. A couple of months ago, the parties issued a preliminary intention to purchase, but then Novogratz’s company “changed its mind”. In response, BitGo demanded $100 million for the wrongfully terminated contract.
Yesterday, the court ruled that Galaxy did not violate the law, because BitGo did not provide the necessary financial statements in time before the deal. This was necessary as part of the comprehensive audit process.
Based on such facts, Galaxy had the right to terminate the deal. They are not responsible for compensation for damages.
Here is how the Novogratz company commented on the outcome of the case:
“We are pleased with the court’s decision to dismiss BitGo’s claims. It is time for all of us to work together and focus on the challenge before us: to modernize the global financial system in a way that promotes innovation and protects investors and consumers alike.”
The other day the head of Galaxy Digital Michael Novogratz spoke at a fintech conference. He criticized the SEC lawsuits against crypto companies. And he said that now Galaxy will actively develop its international presence. The businessman does not directly talk about moving from the United States. But many crypto companies are already doing it.