Digital asset custodian BitGo is suing Galaxy Digital in a new lawsuit due to damages. The lawsuit will cost $100 million as, according to BitGo, Galaxy Digital owes the company a “reverse break fee” because of the acquisition termination.
However, Galaxy Digital said BitGo’s failed audit submission on July 31, 2021, canceled the acquisition.
Last August 15, BitGo pointed at Galaxy for having “improper” conduct due to breaching the contract for a custodian purchase of digital assets.
BitGo wants to take legal action versus Galaxy because of the pending $100 million “reverse break fee” their rival pledged in March 2022. The asset custodian sought help from the Quinn Emanuel law firm.
BitGo Wants Termination Fee Against Galaxy Digital
R. Brian Timmons, a Quinn Emanuel partner, stated that Galaxy got itself in two situations: owing its partner the $100 million termination fee or it acted in bad faith due to terrible circumstances.
This rivalry started in May 2021 when Galaxy Digital wanted to buy BitGo. Initially, they proposed to buy BitGo for $1.2 billion.
Galaxy CEO Mike Novogratz changed the proposal later on as the company needed to do some “adjustments” before buying BitGo.
The research found that the partnership would have happened in the second quarter of 2022. Theoretically, the market crash influenced the fallout between the two companies. On August 15, BitGo publicly stated that it has $64 million worth of assets under custody since the supposed partnership in 2021.
Multiple Firms and Exchanges on Edge
Since the constant market collapse in 2022, multiple blockchain companies faced massive problems, including bankruptcy, protocol hacks, and failed buyouts.
Communities in the business niche have polarizing opinions about Web3, NFT, and blockchain technology.
As of this writing, the crypto market is looking to recover based on professional analysts’ studies, such as Bitcoin resting on an “acquisition” phase in the 200-day Moving Average in the chart and the upcoming Ethereum Merge that can reverse the overall market condition.