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The Delaware Court of Chancery in the United States has granted a motion from crypto investment firm Galaxy Digital largely dismissing digital asset custodian BitGo\u2019s case following a dropped acquisition of the firm in 2022.<\/p>\n
According to court documents filed on June 9, Vice Chancellor J. Travis Laster dismissed BitGo\u2019s complaint against Galaxy Digital with prejudice. The decision followed Galaxy dropping its decision to acquire BitGo in August 2022 as part of a $1.2-billion deal after extensive efforts, citing a breach of contract. BitGo subsequently filed a lawsuit against Galaxy seeking $100 million in damages.<\/p>\n
In his ruling, Laster said Galaxy had a \u201cclean termination right\u201d to the BitGo acquisition based in part on BitGo\u2019s failure to deliver certain financial statements in its efforts to go public in the United States. A Galaxy spokesperson told Cointelegraph the company was \u201cpleased\u201d with the court\u2019s decision to dismiss BitGo\u2019s claims.<\/p>\n
\u201cThere are no facts alleged that could make it reasonably conceivable that the exercise of the termination right was inconsistent with the implied covenant of good faith and fair dealing,\u201d said Laster.<\/p>\n
\nWe\u2019re pleased with the court\u2019s decision to dismiss BitGo\u2019s claims. Now is the time for all of us to work together and focus on the task at hand: Upgrading the global financial system in a manner that promotes innovation and protects investors and consumers alike. pic.twitter.com\/xPrMP8AghW<\/a><\/p>\n