Bitgo accuses Galaxy Digital of the intentional breach of contract in a $ 100 million lawsuit

Bitgo accuses Galaxy Digital of the intentional breach of contract in a $ 100 million lawsuit

BITGO demands digital damages of more than $ 100 million from Galaxy because it gave up its plan to take over the crypto attitude company last month.

im A series of tweets said Bitgo on Tuesday that it was Galaxy because of "inappropriate rejection and intentional injury" Fusion contract sues.

The lawsuit submitted to the Delaware Chancer Court comes several weeks after Galaxy has resigned from his decision to buy Bitgo.

Galaxy claimed that Bitgo had not submitted the certified annual financial statements 2021 until July 31. The documents were needed for the SEC registration from Galaxy because it strives to become a stock corporation, said a spokesman at the time.

Bitgo has commissioned a law firm Quinn Emmanuel The group also represents Elon Musk, who is also trying to stop his takeover offer from Twitter in October.

"Although Bitgo does not believe that the complaint contains confidential information, it was submitted with great caution at the Delaware Chanancery Court under Siegel," said Brian Timmons, partner of Quinn Emanuel, in a statement. "Galaxy claims something else and wants to edit some of the allegations before the complaint becomes public."

The complaint should be open to the public on Thursday at around 5:00 p.m. ET, said a Bitgo spokesman.

A representative of Galaxy Digital did not immediately answer a request for comment.

The planned takeover of Bitgo in the amount of $ 1.2 billion, which was first announced in May 2021, should offer Galaxy first-class brokerage services for institutional investors, including storage, lending, trade execution, pricing and administrative services. The deal had already been delayed.

After Galaxy broke his deal with Bitgo last month, it said that it is planning to introduce Galaxy One Prime, a platform for institutions that will integrate trade, lending, derivatives and qualified custody.

The company recorded a net loss of $ 555 million in the second quarter, but managers said during their last conference on the phone that Galaxy has $ 1.5 billion in liquidity, including more than $ 1 billion in cash.

Industry observers previously indicated the rarity of fusion codes of this kind and said Blockworks last month that Galaxy and Bitgo would probably try to avoid a chaotic legal dispute.

. .

The contribution Bitgo accuses Galaxy Digital of the "intentional breach of contract" in a 100 million dollar suit is not financial advice.