Delaware Supreme Court Approves BitGo’s $100M Lawsuit Against Galaxy

BitGo has received a favorable ruling from the Delaware Supreme Court, which overturned the dismissal of its $100 million lawsuit against Galaxy Digital. The lawsuit is a result of a failed acquisition between the two companies. The court stated that the language used in the merger agreement was “ambiguous,” leading to the decision to reverse the lower court’s ruling and allow for additional evidence to resolve the ambiguity. BitGo can now pursue legal action against Galaxy. In the initial lawsuit, BitGo accused Galaxy of intentionally breaching the acquisition agreement. Galaxy terminated the deal, claiming the right to do so after BitGo failed to provide audited financial statements. BitGo’s appeal was successful, and the case will now proceed in the Chancery Court. Galaxy has expressed confidence in its case and will vigorously defend itself. The company had announced its intention to acquire BitGo in 2021 but disclosed exposure to FTX just before the exchange filed for bankruptcy. Despite a decline in Galaxy Digital stock, the shares have gained since the beginning of the year. Galaxy Asset Management, a division of Galaxy Digital, continues to expand and expects top wirehouses to become more involved in spot Bitcoin ETFs in the next year.