Galaxy, BitGo in court over failed $1.2B acquisition

Galaxy Digital founder Michael Novogratz and BitGo CEO Mike Belshe are facing off in court over a failed merger and acquisition deal from four years ago. According to a Bloomberg report, BitGo is seeking at least $100 million in damages, alleging that Galaxy unilaterally withdrew from a $1.2 billion acquisition deal pursued in 2021. The transaction would have been the largest M&A deal in the crypto industry at the time. BitGo claims that Galaxy did not make sufficient efforts to finalize the deal and concealed information about an investigation by U.S. regulators. In his court testimony, Novogratz countered that Galaxy was not the target of the investigation and that the issue was unrelated to the regulatory approval process. He also emphasized that BitGo forfeited its right to a termination fee by failing to submit essential financial documents by the deadline. Novogratz explained that he had worked to close the deal, but the U.S. Securities and Exchange Commission (SEC), led by Chairman Gary Gensler at the time, made the transaction very difficult. He stated that both companies eventually determined the probability of regulatory approval was low, adding that Galaxy had even proposed merging in Canada to await an SEC approval.