A U.S. court has dismissed the lawsuit brought by BitGo against Galaxy Digital regarding a failed merger in 2021. BitGo had alleged that Galaxy Digital failed to uphold their end of the bargain, but the court determined that Galaxy Digital’s decision to terminate the merger due to BitGo’s failure to deliver audited financial statements was valid, effectively voiding the termination fee. Galaxy Digital has expressed their pleasure that the claims were dismissed and called for cooperation to upgrade the global financial system.
Meanwhile, BitGo has reached a preliminary agreement to acquire its primary U.S. competitor, Prime Trust. The acquisition will help BitGo gain an edge in the highly competitive digital asset custody space. The acquisition is expected to close in the fourth quarter of 2021.
In other news, JP Morgan has agreed to pay $290 million to settle a class-action lawsuit from victims of Jeffrey Epstein, the American financier and sex offender who committed suicide in jail while awaiting trial on sex trafficking charges last year. Plaintiffs had claimed that the bank laundered money and thereby enabled sex trafficking on behalf of Epstein while he was still a client. The bank has not admitted liability in the case but said the settlement was in the best interests of survivors. A total of 100 women are expected to receive compensation for abuse, while there are expected to be further settlements with other banks.
In the cryptocurrency market, Ethereum is attempting to recover above the $1,740 level against the US Dollar, with a potential steady rise if it can move above the $1,780 resistance level. The price is still trading below $1,780 and the 100-hourly Simple Moving Average, but there was a break above a major bearish trend line with resistance near $1,740. Ethereum is currently forming a support base and testing the 23.6% Fib retracement level of the main drop from the $1,854 swing high to the $1,718 low. If it fails to clear the $1,770 resistance, the price may see another decline with initial support at the $1,730 level. Traders and investors are keeping a close eye on Ethereum as it could signal a broader market trend.