BitGo Slams Galaxy Digital, Sues Them For $100M

LAGOS (CoinChapter.com) — Cryptocurrency custody firm BitGo sued digital asset investment firm Galaxy Digital for pulling out of a deal to acquire it.

The digital asset custodian in the suit filed on Tuesday is seeking more than $100 million in damages. BitGo in a statement shared via its official Twitter handle alleges that Galaxy Digital intentionally breached its $1.2 billion merger.

It noted that the action of the crypto investment firm failed to honor the merger agreement and was not scheduled to expire until the end of this year. The complaint was filed in Delaware Chancery Court and will be made available to the public on September 15.

Recall that Mike Novogratz’s Galaxy Digital earlier said it would terminate its proposed deal to acquire BitGo and the termination would not result in any fee. Following the development, BitGo on Aug. 15 declared its intention to sue Galaxy, labeling the termination of the agreement as “absurd.”

ALSO READ: 85% of Mike Novogratz Wealth Now In Crypto

The crypto custodian hired law firm, Quinn Emanuel, to sue the digital asset investment firm. Brian Timmons, lawyer at the firm argued that Galaxy’s recent losses is responsible for the termination of the merger agreement. Hence the need for the firm to pay damages.

“Either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith and faces damages of that much or more.”

Timmons added.

Fidelity Will Shift Retail To Crypto Soon —Galaxy Digital’s Novogratz

In a separate development, Galaxy Digital CEO has claimed to have heard that Fidelity Investments will soon shift retail customers into crypto. Novogratz during the SALT conference in New York Fidelity was actively building a retail crypto trading platform.

“A bird told me Fidelity is going to shift their retail customers into crypto soon enough. I hope that bird is right. So we are still this institutional march and that gives crypto its floor.”

Mike Novogratz said.

Abigail Johnson CEO of Fidelity has earlier stated that the company’s long-term goals for the cryptocurrency market include expanding access to and enhancing the infrastructure supporting the asset class.