BitGo, a leading digital asset custodian, says it will seek over $100 million in termination fee damages from Mike Novogratz and Galaxy Digital Holdings Ltd.
A press release BitGo published on Monday noted that the crypto custodian viewed Galaxy’s earlier announcement that it had terminated their previously agreed acquisition deal as “improper.”
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According to BitGo, their merger deal with Novogratz’s Galaxy was not due to expire until 31 December 2022 – the earliest Galaxy would have walked away from the $1.2 billion purchase agreed upon in March 2022.
Galaxy had announced on Monday that it had exited the acquisition plans it had with BitGo after the custodian failed to avail audited financial statements for 2021. According to Galaxy Digital, there was to be no termination fee.
But BitGo claims the company had promised to pay a $100 million termination fee, adding that Galaxy also only informed them of its pulling out on Friday. BitGo has engaged the services of legal firm Quinn Emanuel as it seeks to recoup the said reserve break fee.
BitGo said it has hired litigation powerhouse Quinn Emanuel to take appropriate legal action. Brian Timmons, a partner at Quinn Emanuel called Galaxy’s move “absurd,” adding:
BitGo has honored its obligations thus far, including the delivery of its audited financials. It is public knowledge that Galaxy reported a $550 million loss this past quarter, that its stock is performing poorly, and that both Galaxy and Mr. Novogratz have been distracted by the Luna fiasco. 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.”
Mike Novogratz and Galaxy Digital had not commented on the BitGo claims by time of going to press.
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