Delaware trial in Galaxy BitGo merger dispute over $100 million fee

A long-planned $1.2 billion merger between cryptocurrency firms Galaxy Digital and BitGo has culminated in a high-stakes trial in Delaware Chancery Court, with BitGo seeking at least $100 million in damages for the deal's collapse. The legal battle, now entering its final phase, centers on conflicting accounts of why the acquisition, first announced in May 2021, was terminated by Galaxy in August 2022.

Galaxy Digital, founded by billionaire Michael Novogratz, stated it ended the agreement because BitGo failed to deliver compliant, audited financial statements for 2021 by a contractual deadline of July 31, 2022. The company argued this failure voided any obligation to pay a termination fee. BitGo, however, contends the reason was pretextual. In court this week, BitGo CEO Mike Belshe testified that his company provided all necessary documentation and that Galaxy's public termination was "incredibly damaging."

BitGo's lawsuit alleges Galaxy did not use reasonable efforts to complete the merger and concealed details of regulatory probes that would have impacted the deal. Specifically, BitGo claims Galaxy withheld information about inquiries from the U.S. Securities and Exchange...