Mike Novogratz testifies in court over failed $1.2B BitGo deal
Galaxy Digital founder Mike Novogratz appeared in court on Tuesday to testify in the ongoing legal battle over the failed $1.2 billion merger with BitGo CEO Mike Belshe in 2021. This planned deal was expected to be the largest merger in the crypto industry at the time. According to Cointelegraph.com, reports .
Galaxy terminated the deal in August 2022, at a time when the crypto market was in crisis following the collapse of the Terra ecosystem. BitGo is seeking $100 million in damages from Galaxy for terminating the contract. BitGo also claims that Galaxy concealed that it was being investigated by U.S. authorities, while Galaxy asserts that BitGo failed to provide financial data on time.
According to Bloomberg, Novogratz stated in a Delaware court that he had tried to complete the deal, but obtaining regulatory approval became impossible due to strict requirements imposed by the SEC (Securities and Exchange Commission) led by Gary Gensler.
According to Mike Novogratz, Galaxy was not the subject of any investigation, and this process would not have affected the merger. He emphasized that BitGo did not submit the necessary financial reports on time, thereby forfeiting its right to the $100 million termination fee.
BitGo head Mike Belshe, in his testimony on Monday, said that all necessary information had been provided and that Galaxy's actions had damaged the company's reputation. The trial is expected to conclude this week, and the judge will issue a final decision on whether BitGo is entitled to the $100 million termination fee.
