Reading 2 minutes Published Updated
The Delaware Court of Chancery in the United States has granted a motion by cryptocurrency investment firm Galaxy Digital, largely dismissing a lawsuit filed by BitGo, the custodian of digital assets, after refusing to acquire the firm in 2022.
According to court documents filed on June 9, Vice Chancellor J. Travis Laster dismissed BitGo’s lawsuit against Galaxy Digital with prejudice. The decision follows Galaxy backtracking on its decision to acquire BitGo in August 2022 in a $1.2 billion deal after extensive efforts, citing breach of contract. BitGo subsequently filed a lawsuit against Galaxy seeking $100 million in damages.
In his ruling, Laster said that Galaxy had a “pure right to terminate” the BitGo acquisition, based in part on BitGo’s failure to provide certain financial statements in its efforts to become a public company in the United States. A spokesperson for Galaxy told Cointelegraph that the company is “pleased” with the court’s decision to dismiss BitGo’s claims.
“There are no facts stated that would reasonably suggest that exercising the right to terminate is inconsistent with the implied agreement of good faith and fairness,” Laster said.
We’re pleased with the court’s decision to dismiss BitGo’s claims. Now is the time for all of us to work together and focus on the task at hand: Upgrading the global financial system in a manner that promotes innovation and protects investors and consumers alike. pic.twitter.com/xPrMP8AghW
— Galaxy (@galaxyhq) June 12, 2023
RELATED: Galaxy Digital plans to turn a profit after a $1 billion net loss in 2022
Galaxy Digital, run by Mike Novogratz, announced its intention to acquire BitGo in May 2021 as part of its public offering in the US. bankruptcy in November.
It is unclear what legal options BitGo may have following the Delaware court ruling. Cointelegraph reached out to legal counsel for BitGo but has not received a response as of press time.