Bitgo’s $100M Galaxy lawsuit may proceed – Delaware Supreme Court
The Delaware Supreme Court overturned a lower court's decision to dismiss BitGo's $100 million lawsuit against Galaxy Digital.
In a May 22 filing, the Delaware state Supreme Court said the language in the $1.2 billion BitGo-Galaxy Digital merger agreement — which expires in August 2022 — was “ambiguous.” The state Supreme Court said it would reverse the Delaware Chancery Court's decision “after considering the extrinsic evidence appropriate to resolve this ambiguous issue.”
The successful appeal, originally filed on February 7, appears to allow BitGo to take another bite out of Apple by suing Galaxy Digital. In the year In an August 2022 lawsuit, the company accused Galaxy of “willfully breaching” the purchase agreement. After BitGo fails to provide audited financial statements from 2021, Galaxy reserves the right to terminate the contract, he said.
R. Brian Timmons, a partner at the law firm Quinn Emanuel representing Bitcoin, told Cointelegraph about the court's decision, “We believe that justice will be served on appeal and we are very pleased to continue this matter in the Court of Chancery.” .
Related: BitGo Claims $100M After Losing Lawsuit Against Galaxy
A Delaware court dismissed BitGo's case with prejudice in June 2023. Vice Chancellor J. Travis Laster said at the time that Galaxy had a “clean right of termination” to acquire BitGo. Responding to the May 22 decision, a Galaxy spokesperson told Cointelegraph that the company will “continue to vigorously defend ourselves” and is “confident in the merits of our case.”
Galaxy, which is run by Mike Novogratz, said it intends to acquire Bitcoin in May 2021 and has gone public in the United States. In the year Amid the fall of cryptocurrency exchange FTX in November 2022, Galaxy disclosed that $77 million was exposed to the firm before FTX filed for bankruptcy.
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Update (May 24 at 10:12 pm UTC): This article has been updated to include a statement from Galaxy Digital.
