Legal Battle Resolved
The Delaware Supreme Court recently made a significant ruling in favor of BitGo, overturning a lower court’s dismissal of a $100 million lawsuit against Galaxy Digital. The dispute between the two companies stemmed from a failed acquisition, with the Supreme Court highlighting the ambiguity in the merger agreement as a key factor in their decision.
The court’s decision now paves the way for BitGo to pursue legal action once again, following the successful appeal submitted earlier this year. The initial lawsuit, which accused Galaxy of breaching the acquisition agreement, was met with dismissal by the Delaware Court of Chancery. However, the recent ruling by the Supreme Court has breathed new life into the case, allowing for further examination and consideration of evidence.
“We believe justice prevailed on appeal, and we are delighted to move forward with this case in the Chancery Court,” said R. Brian Timmons, a partner at law firm Quinn Emanuel representing BitGo.
Vice Chancellor J. Travis Laster’s previous determination of Galaxy’s termination right regarding the BitGo acquisition was challenged and overturned by the latest ruling. In response, a spokesperson for Galaxy expressed their commitment to defending the company’s position vigorously.
Galaxy’s Continued Efforts
Galaxy, led by Mike Novogratz, had announced its intent to acquire BitGo as part of its US public offering in 2021. However, challenges arose following the collapse of the cryptocurrency exchange FTX, which revealed significant exposure for Galaxy just before FTX’s bankruptcy filing.
In response to these developments, Galaxy Asset Management was appointed to manage FTX’s crypto holdings, while also overseeing other institutional investment activities within Galaxy Digital Holdings. Despite fluctuations in stock performance and challenges in the cryptocurrency market, Galaxy remains optimistic about the future.
“We will probably see institutional FOMO,” remarked Steve Kurz, the Global Head of Galaxy Asset Management, during a recent industry conference.
The cryptocurrency landscape continues to evolve, with Galaxy and BitGo at the center of a legal and financial saga that underscores the complexities and uncertainties within the industry.
