Cryptocurrency custodian BitGo recently launched a counterattack after Galaxy Digital announced it had stopped buying it.
BitGo said on Monday it plans to sue Galaxy Digital for stepping back from the firms’ $1.2 billion merger deal.
Cryptocurrency Company BitGo Demands $100M From Galaxy Digital For Breaking Deal
BitGo, one of the largest custodians in the crypto industry, said it will seek $100 million in compensation from Galaxy Digital. In a press release, it was stated that Galaxy refused to pay this previously promised separation fee.
“The attempt by Mike Novogratz and Galaxy Digital to blame BitGo for the termination is absurd,” said R. Brian Timmons, a partner at BitGo’s hired law firm Quinn Emanuel.
Mike Novogratz is best known as the CEO of Galaxy Digital company. Novogratz, collapsing terra was among the supporters of the ecosystem.
In his press release, Timmons pointed to Galaxy Digital’s recent losses, which he says are around hundreds of millions of dollars:
“Either Galaxy will pay BitGo a $100 million termination fee as promised, or it acted in bad faith, so it will incur this much or more damage.”
A spokesperson from Galaxy Digital used the following statements in a statement:
“I believe BitGo’s claims are unjustified and we will defend ourselves vigorously. As previously mentioned, BitGo did not provide some of the financial statements Galaxy needed for its SEC filing. Thereupon, Galaxy Board of Directors decided to exercise its right of termination arising from the contract.”
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!