One of crypto's biggest takeover failures is back in court this week as billionaire investor Michael Novogratz, founder and chief executive of Galaxy Digital, and BitGo chief executive Mike Belshe faced off in Delaware over a dispute tied to a collapsed $1.2bn merger.
Novogratz, BitGo CEO Face Off in Court over Failed $1.2bn Crypto Deal: Bloomberg
22 May 2026 - 00:20 CEST
By Ana Pereira
The case centres on Galaxy's abandoned acquisition of BitGo, an institutional grade digital asset and financial services company. When the deal was announced during 2021's bull market, it was hailed as one of the largest deals in crypto. The transaction fell apart in 2022 after a sharp market downturn erased billions from digital asset valuations and pushed several industry firms into crisis.
BitGo is seeking at least $100mn, arguing Galaxy, a financial services and investment management firm, failed to use "reasonable best efforts" to complete the acquisition, Bloomberg reported on 21 May.
Galaxy has argued it lawfully terminated the agreement as BitGo failed to provide audited financial statements needed for Galaxy's planned listing process.
The legal battle has stretched for years under the Delaware Chancery Court. Earlier rulings initially favoured Galaxy before appeals revived BitGo's claims and sent the dispute back toward trial.
After closing arguments conclude this week, Chancellor Kathaleen McCormick is expected to issue a written ruling.
