A Delaware Court of Chancery judge has dismissed a lawsuit filed by digital asset custodian BitGo against crypto investment firm Galaxy Digital. The lawsuit stemmed from Galaxy Digital’s decision to drop its $1.2 billion acquisition of BitGo in August 2022.
In his ruling, Vice Chancellor J. Travis Laster said that Galaxy Digital had a “clean termination right” under the terms of the acquisition agreement.
Laster also found that BitGo had not presented any evidence that Galaxy Digital’s decision to terminate the agreement was motivated by anything other than BitGo’s failure to provide certain financial information.
BitGo has said that it intends to appeal the ruling. The company has also said that it is still pursuing other acquisition opportunities.
The dismissal of BitGo’s lawsuit is a setback for the company, but it does not mean that the legal battle between the two companies is over. BitGo is still pursuing an appeal, and the outcome of that appeal could have a significant impact on the future of both companies.
