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Galaxy Digital was sued for exiting the BitGo deal



(Reuters) — Crypto financial services firm Galaxy Digital Holdings Ltd. should pay at least $100 million in damages for walking away from its $1.2 billion takeover deal for BitGo Inc., the digital asset custodian said in a court filing made public on Thursday.

Galaxy closed the takeover, the first billion-dollar crypto deal, as it reeled from the collapse of digital currencies but blamed BitGo’s accounting, according to the lawsuit filed by BitGo on Tuesday.

“Galaxy’s decision to prematurely abandon the merger with BitGo had nothing to do with BitGo’s financial statements and everything to do with Galaxy’s massive losses,” said BitGo’s complaint, which was filed in Delaware̵

7;s Court of Chancery.

The lawsuit seeks at least $100 million in damages for Galaxy’s alleged breach of the buyout agreement.

Galaxy said it would seek to have the lawsuit dismissed.

Galaxy said in August it would close the takeover because BitGo failed to deliver revised financial statements for 2021 by a July 31 deadline.

Galaxy announced the deal in May 2021, when a frenzy for the digital asset sent bitcoin to more than $55,000.


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