Galaxy and BitGo Face Off in Court Over Failed Merger; BitGo Seeks at Least $100 Million

Odaily reported that Galaxy Digital founder Michael Novogratz and BitGo CEO Mike Belshe are currently litigating over the failed $1.2 billion merger deal from four years ago.

According to reports, the transaction was originally intended to take the combined company public on Nasdaq, but was later terminated due to adjustments in SEC accounting guidance and market liquidity crises triggered by the Terra/Luna collapse.

BitGo is demanding that Galaxy pay at least $100 million in termination fees, and accuses Galaxy of failing to take reasonable steps to advance the transaction while concealing details of an investigation by U.S. regulators. In response, Novogratz stated that Galaxy was not the subject of the investigation, and argued that BitGo has lost its eligibility to claim the termination fee for failing to submit required financial statements on time. (Bloomberg)