Mike Novogratz took the witness stand this week in a Delaware courtroom, offering testimony in the legal fight over the collapsed $1.2 billion merger between his firm, Galaxy Digital, and crypto custody provider BitGo. The dispute now hinges on a $100 million termination fee — and the court has yet to rule who owes what.
The $100 million termination fee at stake
Galaxy Digital agreed to buy BitGo in 2021 in a deal valued at $1.2 billion, but the merger fell apart in 2022. BitGo claims Galaxy improperly terminated the agreement and is owed the termination fee. Galaxy argues it had valid grounds to walk away and that BitGo failed to meet certain conditions. Novogratz's testimony is the latest development in a case that has drawn attention from the crypto industry, given the size of the deal and the personalities involved.
What Novogratz told the court
Details of his testimony remain sealed, but court filings indicate Novogratz was questioned about the events leading up to the breakup. The Galaxy CEO is known for his outspoken views on crypto markets, but in court he faced pointed questions from BitGo's legal team about the timeline of the merger's collapse. No transcript has been released, but sources familiar with the proceedings described the questioning as intense.
A pending decision with no clear timeline
The case is being heard by Vice Chancellor J. Travis Laster of the Delaware Court of Chancery. He has not indicated when he will issue a ruling. Both sides have rested their cases after a trial that lasted several days. The outcome could set a precedent for how crypto merger agreements are enforced in court, especially when market conditions shift abruptly.
