Cryptocurrency custody company BitGo said Monday it plans to sue Galaxy Digital for backing out of the duo’s $1.2 billion merger agreement.
BitGo, one of the main custodians in the crypto industry, said it will seek $100 million in damages from Galaxy. In a press release, it said Galaxy is refusing to pay this previously promised break-up fee.
“The attempt by Mike Novogratz and Galaxy Digital to blame the termination on BitGo is absurd,” said R. Brian Timmons, a partner with Quinn Emanuel, the law firm BitGo has retained. In the press release, he pointed to Galaxy’s recent losses, which he said range in the hundreds of millions of dollars.
“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,” Emanuel wrote.
A representative for Galaxy did not immediately respond to a request for comment.
