A US court has dismissed BitGo’s lawsuit against Galaxy Digital over a failed merger previously agreed to in 2021.
In the company response to the terminated merger agreement, BitGo had alleged that Galaxy Digital failed to live up to its end of the bargain, saying the company “intends to hold Galaxy Digital legally liable for its improper decision to terminate the merger agreement “, with an attorney representing the company adding that “Either Galaxy owes BitGo a termination fee of $100 million as promised, or it acted in bad faith and faces damages of that or more.”
At the time of the termination, Galaxy Digital cited BitGo’s failure to provide audited financial statements for 2021 that meet the requirements of the agreement. According to court documents made public on June 9, it was a “valid basis” for the decision to end the merger, and it effectively waived the termination fee.
“We are satisfied with the court’s decision to dismiss BitGo’s claims,” A declaration made by Galaxy Digital on Twitter read. “Now is the time for all of us to work together and focus on the job at hand: upgrading the global financial system in a way that promotes innovation and protects investors and consumers.”
Just last week, it was announced that BitGo had reached a preliminary agreement to acquire its main US competitor, Prime Trust. Although the details of this merger have not yet been made public, the industry had widely speculated in recent days that Prime Trust was facing financial problems. So the deal was seen as a relatively good thingaverting what many thought was the impending failure of another great endeavor.
