- They will not receive compensation for avoiding the deal
- BitGo had previously demanded $100 million from Galaxy Digital
The Delaware court dismissed BitGo’s lawsuit against Galaxy Digital and denied monetary compensation.
Which was the cause of the dispute was the termination of a $1.2 billion deal between Galaxy Digital and BitGo. A couple of months ago, the parties formalized a preliminary intent to buy, but then Novogratz’s company “changed its mind”. BitGo responded by demanding $100 million for wrongfully terminating the contract.
The court ruled yesterday that Galaxy did not violate the law because BitGo did not provide the necessary financial statements on time before the deal.. This was necessary as part of the due diligence process.
Based on such facts, Galaxy had the right to rescind the deal. They are not liable for damages.
This is how Novogratz commented on the outcome of the case:
“We are pleased with the court’s decision to dismiss the BitGo claims.. He criticized SEC lawsuits against cryptocurrencies. And he said that now Galaxy will more actively develop an international presence. The businessman does not directly talk about moving from the U.S.. But many crypto companies already do.