Galaxy CEO Novogratz Testifies Over Failed $1.2B BitGo Merger in Delaware Court

According to Bloomberg, Galaxy Digital founder Mike Novogratz testified this week in Delaware Chancery Court over the failed $1.2 billion BitGo acquisition. BitGo is seeking at least $100 million in damages, claiming Galaxy failed to make reasonable efforts to complete the deal and concealed details of U.S. regulatory investigations.

Novogratz testified that he was "pushing to get this deal done" but argued that the SEC under then-Chair Gary Gensler made regulatory approval effectively impossible. The dispute centers on whether BitGo's financial statements complied with SEC Staff Accounting Bulletin 121 requirements by the contractual July 31, 2022 deadline. Galaxy contends non-compliance gave it a valid exit without triggering the $100 million termination fee, while BitGo argues Galaxy wrongfully abandoned the transaction.