The Delaware Supreme Court has ruled that BitGo's $100 million lawsuit against Galaxy Digital Holdings over the company's failed merger will be allowed to proceed
The reversal comes after Galaxy had initially won a dismissal of the lawsuit in June 2023 in a lower court. At the time, the court ruled that Galaxy had a "clean termination right" to cancel the acquisition.
What was at one point the largest crypto deal in history and the first to be more than $1 billion, Galaxy ultimately called off the acquisition of BitGo, stating that the company had failed to deliver audited financial statements for 2021 by a deadline. BitGo immediately claimed that the termination was "improper" and would seek a $100 million termination fee.
The Delaware Supreme Court ultimately decided that the merger agreement's definition of "Company 2021 Audited Financial Statements" was ambiguous and that both parties' interpretations of the wording were reasonable.
Since the failed acquisition, BitGo, has gone on to raise a $100 million Series C in 2023 at a $1.75 billion valuation. The company also recently acquired an alternative investing platform for institutions, Brassica, which had emerged from stealth in 2023.
