BitGo Plans To Sue Galaxy After Firm Ends Merger Agreement

Company claims it is owed a $100 million termination fee


Galaxy Digital CEO Michael Novogratz | See Daly/"Michael Novogratz" (CC license)


key takeaways

  • BitGo has submitted its audited financials to Galaxy, lawyer representing the company says
  • Company notes the merger agreement was not scheduled to expire until Dec. 31

BitGo has hired law firm Quinn Emanuel as it prepares to sue Galaxy Digital for terminating its deal to acquire the company.

The news came just hours after Galaxy Digital revealed that it is backing out of its agreement to buy the crypto platform after it failed to deliver audited 2021 financial statements by July 31.

BitGo called Galaxy’s move to terminate the merger agreement an “improper decision,” noting that the deal was not scheduled to expire until Dec. 31.

R. Brian Timmons, a partner with Quinn Emanuel, said in a statement Monday that BitGo has honored its obligations, including submitting its audited financials.  

“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,” Timmons added. 

A Galaxy spokesperson told Blockworks in an email that, as previously stated, BitGo did not provide certain financial statements needed by Galaxy for its SEC filing, adding that the company’s board of directors then made the decision to exercise its contractual right.

“We believe BitGo’s claims are without merit and we will defend ourselves vigorously,” the Galaxy representative said.

Galaxy CEO Mike Novogratz said on the company’s second quarter earnings call last week that the firm was “evaluating what’s best for both businesses,” adding that the length of the acquisition has been “frustrating.”

BitGo CEO Mike Belshe said in the Monday statement that BitGo’s client growth grew by three times in 2021 compared to the prior year, and has continued this year. It ended 2021 with $64 billion in assets under custody. 

Galaxy posted a $555 million net loss during the second quarter

This is a developing story.

Updated on Aug. 15, 2022 at 3:40 pm ET.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.


Plus, all the world is green as prices across the crypto space rally, with solana reaching a nearly two-week high


Investors add to crypto positions after “turnaround in sentiment due to lower-than-expected CPI,” CoinShares research head says


Plus, Ethereum is in the midst of a vibecession


Also, former Valkyrie CEO lands new leadership role at Canadian investment firm Cypherpunk Holdings


This week’s biggest funding round saw Jump Trading, JPMorgan contribute to the round


Plus, a layer-1 for intellectual property is launching and Farcaster users peaked