According to Bloomberg, Galaxy Digital founder Michael Novogratz and BitGo CEO Mike Belshe are in court this week in Delaware over their failed $1.2 billion merger deal in 2021.
BitGo is demanding that Galaxy pay at least $100 million in termination fees, claiming that Galaxy did not make reasonable efforts to complete the deal and concealed regulatory investigations related to Luna; Galaxy, on the other hand, states that the investigations did not affect SEC approval processes, and that BitGo failed to provide compliant audited financial statements on time, thus having no right to claim termination fees. The deal was originally planned to facilitate the merged company's listing on Nasdaq, but was subsequently affected by changes in SEC accounting guidelines and a market liquidity crisis triggered by the Terra/Luna collapse.
According to Bloomberg, Galaxy Digital founder Michael Novogratz and BitGo CEO Mike Belshe are in court this week in Delaware over their failed $1.2 billion merger deal in 2021.
BitGo is demanding that Galaxy pay at least $100 million in termination fees, claiming that Galaxy did not make reasonable efforts to complete the deal and concealed regulatory investigations related to Luna; Galaxy, on the other hand, states that the investigations did not affect SEC approval processes, and that BitGo failed to provide compliant audited financial statements on time, thus having no right to claim termination fees.
The deal was originally planned to facilitate the merged company's listing on Nasdaq, but was subsequently affected by changes in SEC accounting guidelines and a market liquidity crisis triggered by the Terra/Luna collapse.