The Delaware Supreme Court has ruled that BitGo can proceed with its $100 million lawsuit against Galaxy Digital. This decision concerns a failed $1.2 billion merger deal between the two companies.
BitGo alleges that Galaxy Digital wrongfully terminated the agreement due to BitGo’s delayed financial reports. Previously, a lower court had dismissed the case, siding with Galaxy Digital.
The Supreme Court found that the term “financial reporting” in the merger agreement was ambiguously defined, allowing BitGo to revive its claims.
BitGo’s legal representative, R. Brian Timmons, praised the decision as a win for justice. Galaxy Digital, however, stands by its decision and plans to keep defending itself.
This case could set a precedent for future cryptocurrency mergers, emphasizing the need for clear contractual terms. Galaxy Digital, despite the lawsuit, aims to create a $100 million venture fund for digital asset investments.
The outcome of this legal battle will be closely watched and could influence future agreements in the crypto industry.
