The Delaware Court of Chancery in the United States has made a significant decision in the legal battle between digital asset custodian BitGo and crypto investment firm Galaxy Digital.
The court granted a motion from Galaxy Digital, largely dismissing BitGo’s case following the termination of an acquisition deal in 2022.
Key Points:
- Dismissal of BitGo’s Complaint: The Delaware Court of Chancery granted a motion from Galaxy Digital, dismissing BitGo’s complaint against the company. The court’s decision came after Galaxy dropped its plan to acquire BitGo in 2022 as part of a $1.2-billion deal, citing a breach of contract. BitGo subsequently filed a lawsuit against Galaxy seeking $100 million in damages.
- Clean Termination Right: Vice Chancellor J. Travis Laster ruled that Galaxy Digital had a “clean termination right” in the acquisition agreement. One of the reasons cited for the termination was BitGo’s failure to deliver certain financial statements in its efforts to go public in the United States. Laster stated that there were no facts suggesting that the exercise of the termination right was inconsistent with the implied covenant of good faith and fair dealing.
- Galaxy’s Satisfaction with the Ruling: A spokesperson for Galaxy Digital expressed satisfaction with the court’s decision to dismiss BitGo’s claims. The company viewed the ruling as validating its position in the termination of the acquisition agreement.
- BitGo’s Intent to Appeal: BitGo plans to appeal the court’s decision and maintains its belief that Galaxy Digital wrongfully terminated the agreement. Despite the setback, BitGo remains determined to pursue its case and seek a favorable outcome.
- New Endeavors for BitGo: In addition to the legal dispute, BitGo has recently signed a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust. This move showcases BitGo’s ongoing efforts to expand its operations and presence in the industry.
