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BitGo has filed a lawsuit against Galaxy Digital, a crypto financial services provider, alleging that Galaxy Digital willfully violated their $1.2 billion merger agreement. The lawsuit seeks more than $100 million in damages. Following the latter's mid-August termination of the $1.2 billion purchase agreement, BitGo turned to Twitter on Tuesday to share further information about its complaint.
Lawsuit To Release on Thursday
The Delaware Chancery Court received the lawsuit, which will be made public on Thursday. BitGo, a California-based company set to be acquired by Galaxy, announced on August 15 that it intended to sue Galaxy and referred to the deal's cancellation as "absurd." In this case, Galaxy Digital wants to "redact some of the claims before the lawsuit becomes public." BitGo said in a tweet that this is done "out of an excess of caution." The deal was put on hold in March as the crypto financial services provider awaited a ruling from the US Securities and Exchange Commission (SEC) over its plans to restructure as a Delaware-based firm. Michael Novogratz, the CEO of Galaxy, stated that the company was still working on a Nasdaq listing in the United States. In addition, Galaxy said they intended to actively defend the company in any legal proceedings since they thought BitGo's accusations were "without merit." BitGo and Galaxy have declined to give any information on the case to any news organizations.
BitGo to Open Wealth Management Platform
The announcement comes as BitGo continues to create new goods and services. The business on Tuesday reported the opening of its Wealth Management platform, which aims to provide licensed brokers and registered investment advisers direct access to digital assets. BitGo, founded in 2013, is a prominent worldwide digital currency corporation that only serves institutional clients, offering custody, liquidity, and security solutions. The company disclosed about $64 billion in assets under custody in the previous year.