PANews reported on May 22 that, according to Bloomberg, Galaxy Digital founder Michael Novogratz and BitGo CEO Mike Belshe are in court over the $1.2 billion merger deal that fell through four years ago. The deal was originally intended to lead to a Nasdaq listing for the merged company, but was subsequently hampered by changes in SEC accounting guidelines and a market liquidity crisis triggered by the Terra/Luna crash.

BitGo is demanding at least $100 million in termination fees from Galaxy, accusing Galaxy of failing to make reasonable efforts to facilitate the deal and concealing details of the investigation by U.S. regulators. Novogratz argues that Galaxy was not under investigation and that BitGo forfeited its right to termination fees due to its failure to provide required financial statements on time. Novogratz states that regulatory approval became extremely difficult under former SEC Chairman Gensler, and both parties ultimately realized the deal could not be completed.