Galaxy

Read

<p class="is-style-lead">The Delaware Court of Chancery has granted a motion by Galaxy Digital, resulting in the dismissal of BitGo&#8217;s case following the abandoned acquisition.</p>



<p>Vice chancellor J. Travis Laster affirmed that Galaxy Digital had the right to terminate the acquisition of BitGo, asserting a &#8220;clean termination right&#8221; in their decision announced in 2022.</p>



<h2 class="wp-block-heading" id="complaint-dismissed">Complaint dismissed</h2>



<p>According to official court documents filed on June 9, vice chancellor J. Travis Laster dismissed BitGo&#8217;s complaint against Galaxy Digital, imposing a dismissal with prejudice. This decision comes after Galaxy Digital withdrew its intent to acquire BitGo in August 2022 as part of a substantial $1.2 billion deal. </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">We’re 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 manner that promotes innovation and protects investors and consumers alike. <a href="https://t.co/xPrMP8AghW" target="_blank">pic.twitter.com/xPrMP8AghW</a></p>&mdash; Galaxy (@galaxyhq) <a href="https://twitter.com/galaxyhq/status/1668235442271952897?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 12, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>The withdrawal was made due to alleged breaches of contract by BitGo. In response, BitGo responded by filing a lawsuit against Galaxy Digital, seeking $100 million in damages due to Galaxy&#8217;s failure to pay the reverse termination fee outlined in the agreement. </p>



<blockquote class="wp-block-quote">
<p>&#8220;There are no facts alleged that could make it reasonably conceivable that the exercise of the termination right was inconsistent with the implied covenant of good faith and fair dealing.&#8221;</p>
<cite>J. Travis Laster, vice chancellor.</cite></blockquote>



<p>However, according to court documents, the inclusion of the documents in Form S-1, prepared in compliance with Regulation S-X, was hindered by a use restriction, leading to their classification as non-compliant.</p>




    <p>
        You might also like:

        <a href="https://crypto.news/the-block-founder-mike-dudas-criticizes-sec-and-eos/">
            The Block founder Mike Dudas criticizes SEC and EOS        </a>
    </p>




<p>To navigate the legal process, BitGo had previously enlisted the support of global law firm Quinn Emanuel. R. Brian Timmons, a partner at Quinn Emanuel, who emphasized that BitGo has fulfilled its obligations under the agreement, including providing audited financials.</p>



<p>In response, a spokesperson from BitGo expressed their intention to appeal the court&#8217;s decision, asserting that Galaxy&#8217;s termination of the agreement was unjust.</p>



<p>On the other hand, Galaxy Digital was quick to take to Twitter, sharing their agreeance with the court&#8217;s decision, urging their followers to &#8220;focus on the task at hand.&#8221;</p>



<h2 class="wp-block-heading" id="a-turn-of-events">A turn of events</h2>



<p>The court&#8217;s ruling signifies a significant turn of events in the legal battle between the two firms. </p>



<p>The dismissal with prejudice suggests that BitGo&#8217;s complaint has been permanently dismissed and cannot be refiled. The decision follows extensive efforts by Galaxy Digital to fulfill the acquisition agreement, ultimately resulting in the withdrawal due to alleged breaches.</p>



<p>Prior to news on the lawsuit, BitGo had undergone a hard fork upgrade to tackle issues of gas fee spikes and announced the integration of Polygon, further solidifying its position as a provider of safer asset custody for users.</p>




    <p>
        Read more:

        <a href="https://crypto.news/users-withdraw-over-392-million-from-binance-within-24-hours/">
            Users withdraw over $392 million from Binance within 24 hours        </a>
    </p>

US Court grants Galaxy Digital victory, dismisses $100m BitGo lawsuit

Table of Contents

crypto.news

Other articles published on Jun 12, 2023

Bank of China Tokenises Securities on Ethereum

Get Started With a Free Web 3 Domain on blockbank

The Stellar Ecosystem is rapidly expanding and attracting more DeFi developers

Gate.io Startup Offering: $CTY @Custodiy1

Building Trust in SQUID Community, SQUID DAO and SQUID LOTTERY and LOTTERY INITIAL POOL

Blockchain-based AI Compute Protocol Gensyn Raises $43M Series A Led by a16z

Join our free newsletter for daily crypto updates!