Institutional custody firm BitGo has announced its intention to sue Galaxy Digital, run by Mike Novogratz, for damages of approximately $100 million.

Earlier today, Galaxy Digital canceled its proposed $1.2 billion acquisition of the company.

Novogratz claims that the lack of financial data was the reason for its decision to terminate the deal.

Earlier, as we were told in Arab Bitcoin, “Galaxy Digital” agreed to acquire “BitGo” for $1.2 billion in stock and cash.

But she backed away from that, as we indicated at the beginning of the article.

Brian Timmons, BitGo’s legal representative, insists the company has already fulfilled its obligations, describing the accusations and arguments as absurd.

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Cowen Emmanuel, a partner with the Los Angeles-based law firm, attributes the decision to terminate the acquisition, which was supposed to close in the fourth quarter of 2021, to the poor performance of Galaxy Digital stock.

The company recently reported a massive second-quarter loss of $554.7 million.

BitGo also believes that the collapse of Project Terra was a major distraction for Novogratz, forcing Galaxy Digital to cancel the deal.

In January, Novogratz proudly displayed his Luna-inspired tattoo before the major cryptocurrency collapsed several months later.

BitPay claims Galaxy Digital may have to pay more damages if it loses the looming lawsuit.

Prior to Galaxy Digital, payment giant PayPal was reported to be in talks to buy leading cryptocurrency custodian BitGo for $700 million, but the deal fell through.

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BitGo, founded in 2011, has over $64 billion in assets under management.

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