Crypto company BitGo is preparing to sue Galaxy Digital for $100 million.
Galaxy Digital announced today that it has canceled its $1.2 billion acquisition of BitGo.
BitGo sues Galaxy Digital
Mike Novogratz’s company, Galaxy Digital, announced that it has canceled its $ 1.2 billion acquisition deal. The company cited the deficiencies in the financial statement as the reason for the decision.
Galaxy Digital had agreed to buy BitGo for $1.2 billion in stock and cash. BitGo’s lawyer, R. Brian Timmons, stated that the accusations are absurd and that the company has fulfilled its obligations.
According to the statement, BitGo was supposed to submit its 2021 financial statements to Galaxy Digital by July 31. However, BitGo has not forwarded its financial statement to Galaxy Digital until this date.
Galaxy Digital stated that they will not have to pay a compensation despite withdrawing from the agreement.
BitGo also claimed that the collapse in the Terra ecosystem affected Novogratz and was therefore a catalyst for withdrawing from the deal. Novogratz revealed that he even got a tattoo inspired by LUNA.
Founded in 2011, BitGo has more than $64 billion in assets under management.
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