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The Delaware Court of Chancery in the United States has granted a motion from crypto investment firm Galaxy Digital that largely dismisses digital asset custodian BitGo’s case following the firm’s dropped acquisition in 2022.
Vice Chancellor Jay Travis Laster dismissed BitGo’s complaint against Galaxy Digital with prejudice, according to court documents filed on June 9. The decision comes after Galaxy abandoned its decision to acquire BitGo in August 2022 as part of a $1.2 billion deal after extensive efforts, citing breach of contract. BitGo later sued Galaxy for $100 million in damages.
In his decision, Lester said that Galaxy had a “clean termination right” to the BitGo acquisition, based on BitGo’s failure to provide certain financial details in its efforts to go public in the United States. A spokesperson for Galaxy told Cointelegraph that the company was “pleased” with the court’s decision to dismiss BitGo’s claims.
Laster said, “There are no facts which would make it reasonably conceivable that the exercise of the right of termination was inconsistent with the implied covenant of good faith and fair dealing.”
We are pleased with the court’s decision to dismiss BitGo’s claims. Now is the time for all of us to work together and focus on the task at hand: upgrading the global financial system in a way that fosters innovation and protects investors and consumers alike. pic.twitter.com/xPrMP8AghW
— Galaxy (@galaxyhq) June 12, 2023
Connected: Galaxy Digital Turns Profitable in 2022 After $1B Net Loss
Run by Mike Novogratz, Galaxy Digital announced its intention to acquire BitGo as part of its public offering in the US in May 2021. However, in 2022 the BitGo deal fell through and the company approached failed crypto exchange FTX. disclosed $77 million, declared bankruptcy in November
It is unclear what legal avenues BitGo may have following the Delaware court ruling. Cointelegraph reached out to BitGo’s legal counsel but did not receive a response at the time of publication.
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