Galaxy Digital Founder: SEC Made $1.2 Billion Merger with BitGo in 2021 Difficult to Complete

Odaily reported that Galaxy Digital founder Mike Novogratz stated during a Delaware Chancery Court appearance that the U.S. Securities and Exchange Commission (SEC) made it very difficult for the company to complete the planned $1.2 billion merger with BitGo in 2021. At the time, this merger was the largest cryptocurrency merger plan. Galaxy Digital canceled the deal in August 2022, and BitGo subsequently demanded a $100 million termination fee from Galaxy Digital.

Mike Novogratz stated that regulatory approval was unlikely, and BitGo failed to provide the required financial information on time, thus losing the right to receive the $100 million termination fee. BitGo CEO Mike Belshe, however, said that BitGo had provided all necessary information. The trial is expected to conclude this week, and the judge will decide whether BitGo is entitled to the $100 million fee. (cointelegraph)