Things aren’t exactly calm and collected in the cryto universe right now, especially as far as Galaxy Digital is concerned. Monday saw the company terminate a major $1.2 billion agreement to acquire BitGo, a major broker and crypto company. This deal was originally announced all the way back in May of 2021, but it seems as though recent developments have led to a change of heart.
But not only is Galaxy Digital backing out of the deal—they’re also refusing to pay a termination fee, stating that BitGo failed to provide “audited financial statements for 2021 that comply with the requirements of our agreement.”
In response, BitGo naturally wasn’t happy with Galaxy’s decision, calling it “improper.” BitGo has now hired a major law firm to try and recoup a reverse break fee that’s reportedly worth $100 million.
This deal would’ve been a major step for BitGo, but now they’ll suffer a setback as a result.
R. Brian Timmons, a BitGo representative from Quinn Emanuel, stated: “Either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith and faces damages of that much or more.”
According to him, the merger deal was never scheduled to expire, and thus Galaxy’s termination is truly inappropriate.