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BitGo Seeks $100 Million From Galaxy Digital Over Failed Merger

BitGo Seeks $100 Million From Galaxy Digital Over Failed Merger

Galaxy Digital founder Mike Novogratz said the SEC made the company’s planned $1.2 billion BitGo merger difficult, while Delaware Chancery Court is weighing BitGo’s claim for a $100 million breakup fee.

Fact Check
All core elements of the claim are confirmed by multiple independent sources. Bloomberg (the originating report), The Block, and Crypto Briefing all published on May 21, 2026 confirm: (1) BitGo is seeking $100 million from Galaxy Digital; (2) the underlying deal was a $1.2 billion merger; (3) Michael Novogratz (Galaxy founder) and Mike Belshe (BitGo CEO) are the principals in the dispute; (4) the case is now in active court proceedings. The claim's framing that Galaxy cited 'accounting-rule changes, the Terra/Luna collapse, and missing financial statements' is broadly consistent with sources - Galaxy's stated termination reason was BitGo's missing compliant financial statements, and the Terra/Luna market collapse is confirmed as contextual background. The Yahoo Finance source confirms the legal pathway that brought the case to trial in 2026. No source contradicts any element of the claim.
Summary

BitGo and Galaxy Digital remain in court over their failed $1.2 billion merger, with BitGo seeking a $100 million breakup fee in Delaware Chancery Court. Galaxy Digital founder Mike Novogratz said the SEC made the planned 2021 deal very difficult, adding a direct regulatory explanation to Galaxy’s earlier arguments that cited accounting-rule changes, the Terra/Luna collapse, and missing financial statements. The judge will decide whether BitGo is entitled to the fee.

Terms & Concepts
  • SEC: The U.S. Securities and Exchange Commission, the federal regulator that oversees securities markets and can affect how crypto-related deals proceed.
  • Terra/Luna: A crypto ecosystem whose 2022 collapse triggered major market losses and wider stress across the digital asset industry.
  • Breakup fee: A contractual payment one party may owe when a merger or acquisition fails under specified conditions.