BitGo confirms $100 million lawsuit against Galaxy Digital following merger breakdown

BitGo confirmed earlier reports that it would seek $100 million in damages following the termination of its merger with Galaxy Digital. 

BitGo wrote in a Twitter thread: "Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo."

It added that the complaint was was filed in Delaware Chancery Court under seal, and should be accessible by the public shortly after 5 p.m. ET on Thursday.

As previously reported, Galaxy announced the termination of the tie up in August due to a "failure to deliver, by July 31, 2022, audited financial statements for 2021 that comply with the requirements of our agreement."

"No termination fee is payable in connection with the termination," the firm had added.

Last year, Galaxy Digital announced its planned acquisition of BitGo for $1.2 billion. However, The Block reported this past March that the terms of the deal were being renegotiated. 

The news of the failed merger came only a week after Galaxy Digital posted a $554 million loss in the second quarter. Despite the losses, the firm continues to raise capital with an eye toward deal making.