BitGo's $100 Million Lawsuit Against Galaxy Digital Allowed to Proceed
PANews reported on May 25 that cryptocurrency custody company BitGo can continue to sue financial services company Galaxy Digital over a failed merger agreement, according to CoinDesk. The Delaware Supreme Court overturned a lower court's decision last year to dismiss the lawsuit. BitGo filed the lawsuit against Galaxy in August 2022, seeking $100 million in damages, claiming that Galaxy "intentionally" breached the $1.2 billion merger agreement reached in May 2021 after suffering significant financial losses during the crypto bear market, making it unable to pay the substantial fee. Galaxy argued that the deal fell through because BitGo failed to provide the necessary audited financial statements on time and stated that BitGo's allegations were "baseless." Last June, Delaware Court of Chancery Vice Chancellor J. Travis Laster ruled that Galaxy had "just cause" to exit the agreement, citing BitGo's provision of "non-compliant" financial documents. After BitGo appealed, the Delaware Supreme Court found that the definition of "financial statements" in the merger agreement was ambiguous, with both parties providing reasonable interpretations, thus overturning the previous ruling.
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