Novogratz’s Galaxy Sued by Crypto Custodian BitGo Over Deal Breach

is suing Mike Novogratz’s Galaxy Digital Holdings for more than $100 million in damages after Galaxy abandoned its planned $1.2 billion acquisition of the crypto custodian. 

The lawsuit, filed Monday in Delaware Chancery Court, cited Galaxy’s “wrongful repudiation and willful and intentional breach” of the merger agreement, according to public filings tied to the case. The complaint was filed under seal and will be made public on Thursday, in case Galaxy wishes to redact some of the allegations, according to Brian Timmons, a lawyer at Quinn Emanuel Urquhart & Sullivan, which is representing BitGo.

Last May, Galaxy announced its plan to buy BITGO in a cash and stock transaction to broaden its institutional offering and geographic reach. At the time, the deal represented one of the biggest acquisitions in the crypto industry. In August, Galaxy said it was ending the deal with no termination fee payable, citing BitGo’s failure to deliver audited 2021 financial statements by a deadline. 

BitGo has said it honored its obligations so far, including the delivery of the audited financials. A spokesperson for Galaxy reiterated Tuesday that “BitGo’s claims are without merit and we will defend ourselves vigorously.” 

Galaxy, which offers crypto financial services, posted a net comprehensive loss of $554.7 million in the second quarter. BitGo, which was founded in 2013 by Mike Belshe, offers crypto custody, trading, lending and borrowing. 

— With assistance by Jef Feeley