{"id":67466,"date":"2022-09-21T11:24:00","date_gmt":"2022-09-21T08:24:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=67466"},"modified":"2025-09-07T06:45:30","modified_gmt":"2025-09-07T03:45:30","slug":"bitgo-calls-galaxy-digitals-hasty-exit-from-merger-deal","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitgo-calls-galaxy-digitals-hasty-exit-from-merger-deal\/","title":{"rendered":"BitGo calls Galaxy Digital’s hasty exit from merger deal"},"content":{"rendered":"

The decision by the crypto bank Galaxy Digital to exit the merger with BitGo was driven by its enormous losses and unforeseen difficulties with the SEC<\/span>. This is stated in the lawsuit<\/a> filed by the custodian against the failed partner.<\/p>\n

BitGo lawyers refused to link the exit from the deal<\/a> to delays in publishing financial statements, which Galaxy Digital cited as the justification. That was merely a ‘pretext’, they added.<\/p>\n

\n

“This false assertion was [\u2026] a ploy to justify the withdrawal from the merger without paying the agreed termination fee,”<\/em> \u2014 the document states.<\/p>\n<\/blockquote>\n

BitGo representatives said the audit of the financial statements was conducted within the required timelines in line with industry standards. Such aspects were not raised during negotiations.<\/p>\n

The agreement also contemplated Galaxy Digital’s registration with the SEC.<\/p>\n

The responsibility for the withdrawal and delays lay with the crypto bank, according to the lawyers.<\/p>\n

\n

“We strongly disagree with the statements in the document and have filed a motion to dismiss it,”<\/em> \u2014 Galaxy Digital representatives told The Block<\/a>.<\/p>\n<\/blockquote>\n

Earlier in spring 2021, media reported about talks<\/a> between the crypto bank and BitGo regarding a takeover. Later, the parties confirmed the information and put a value on the deal \u2014 around $1.2 billion<\/a> in stock and cash.<\/p>\n

In September, BitGo filed a lawsuit<\/a> against Galaxy Digital for withdrawing from the merger, seeking damages of more than $100 million. That sum was cited as penalties for terminating the agreements.<\/p>\n

By the end of the second quarter of 2022, Galaxy Digital’s cumulative loss stood at $554.7 million<\/a>.<\/p>\n

Follow ForkLog’s Bitcoin news on our Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"

Galaxy Digital’s decision to abandon the BitGo merger was driven by its enormous losses and unforeseen difficulties with the SEC, according to the custodian’s lawsuit against its failed partner.<\/p>\n","protected":false},"author":1,"featured_media":67467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[194,1162,770],"class_list":["post-67466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitgo","tag-court-cases","tag-galaxy-digital"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=67466"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67466\/revisions"}],"predecessor-version":[{"id":67468,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67466\/revisions\/67468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/67467"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=67466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=67466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=67466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}