Galaxy Digital Battles BitGo in Court Over Failed $1.2B Acquisition

On May 22, 2026, Galaxy Digital and BitGo squared off in court over a collapsed 2021 deal valued at $1.2 billion. BitGo is seeking at least $100 million in termination fees, alleging Galaxy wrongfully withdrew and concealed regulatory issues, while Galaxy counters that BitGo failed to provide required audited financials and that SEC scrutiny made completion unlikely. The dispute, which began after Galaxy terminated the agreement in 2022, triggered sharp market reactions the prior day with Galaxy shares rising 6.5% and BitGo falling 4.4%. The case is now seen as a potential precedent for how regulatory risk is allocated in crypto M&A.