ACA Group Has Decided to Abandon its Acquisition of BitFlyer Holdings

ACA Group, a leading financial advisor for institutions across the world has officially announced to the public that it is no longer interested in purchasing holdings of a Japanese-based cryptocurrency exchange, BitFlyer.


The ACA Group which is based in both Singapore and Japan announced the news on Saturday through 

ACA Group had earlier in  April agreed to purchase majority stake holdings of BitFlyer valued at up to $370 million (45 billion Yen). 

The intention of ACA Group was to sell off the BitFlyer holdings after it has increased in corporate value. A coalition of shareholders independently negotiated the ACA agreement with the support of Minefumi Komiyama, the founder of bitFlyer, who owns about 13% of the company.

Not much information was given by ACA Group on their decision to back out from their initial agreement but the decision comes after a number of proposed collaboration has come to halt recently including Galaxy Digital, which terminated its planned acquisition of crypto manager BitGo in August.

All About BitFlyer

BitFlyer is a private company in Tokyo, Japan. The company is involved in buying, selling, and trading bitcoin and other cryptocurrencies with more than 2.5 million users across its platform. BitFlyer was launched against the backdrop of Bitcoin’s permanent market cap of $14,000.

The Tokyo-based crypto exchange BitFlyer recorded a loss of about $6.9 million in profit for the company’s financial year ending in 2019. The loss in profit was a result of a drop in the value of Bitcoin (BTC) in the second half of 2019. 

The Financial Service Agency also discovered a security mishap in BitFlyer’s business processes which eventually expose its customers’ investments to cyber theft in 2018. 

BitFlyer responded to the issue by promising to stop receiving new businesses after regulators said they were not putting the needed efforts and structures to curb money laundering and the finance of terrorism.

The future is still bright for BitFlyer as it has continually shown resilience in the face of adversity over the years. The firm hopes that investors use their previous success to judge them while considering future investments with them.

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Crypto Firm BitGo Files $100m Lawsuit against Galaxy Digital for Breaching Acquisition Deal

BitGo has filed a lawsuit against crypto financial services firm Galaxy Digital.

The California-based institutional digital asset financial services company is seeking more than $100 million in damages as it claims that Galaxy Digital intentionally breached the companies’ proposed $1.2 billion merger agreement announced in May last year.

On May 5 2021, Galaxy announced plans to acquire custodian provider BitGo for $1.2 billion in cash and stock.

However, last month on August 15, Galaxy terminated its deal to acquire BitGo, something that did not go with the other party. BitGo immediately responded, saying it would seek $100 million in damages following the termination of its merger with Galaxy Digital.

In a tweet yesterday, BitGo announced: “Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.”

The crypto custody firm further said that the complaint was filed in Delaware Chancery Court and will be made available to the public on Thursday, September 15.

In a statement, BitGo disclosed its intention to sue Galaxy, describing the termination of the deal as “absurd.”

What Caused the Failed Merger Deal?

On August 15, Galaxy Digital announced that the firm terminated a proposed $1.2 billion stock and cash deal that would allow the crypto company to acquire the digital asset custody business and financial services provider BitGo. Galaxy detailed that the abandoned deal was due to BitGo’s “failure to deliver” specific financial documents.

Galaxy said it exercised its right to terminate its previously announced acquisition deal with BitGo, following BitGo’s failure to deliver by July 31 audited financial statements for 2021 that comply with the requirements of the proposed agreement. Galaxy further stated: “No termination fee is payable in connection with the termination.”

The news of the failed merger came only a week after Galaxy reported a second-quarter net loss of $554.7 million following a plunge in the value of cryptocurrencies.

The financial losses followed Galaxy’s exposure to the collapse of TerraUSD algorithmic stablecoin in mid-May.

The collapse of the Terra blockchain ecosystem hit confidence in cryptocurrencies. Several crypto lending firms such as Celsius Networks, Voyager Digital, Vauld, Zipmex, Babel Finance, among others, were forced to stop customer withdrawals, and many became bankrupt.

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Galaxy Digital Terminates BitGo Acquisition, But Still Eyes Listing on Nasdaq

Galaxy Digital, one of the leading crypto financial services providers, has announced its plans to terminate the proposed acquisition of crypto infrastructure service provider, BitGo. 


The deal is billed to be completed in the first quarter of this year, as reported earlier by Blockchain.News, but Galaxy Digital said it had to terminate the acquisition as BitGo did not fulfil some of the terms of the acquisition.

According to Galaxy Digital, BitGo has refused to deliver its audited financial statements for 2021 that comply with the requirements of our agreement. Per the announcement, this financial statement was due by the end of July this year. The company said would be no termination fee associated with the broken partnership and acquisition.

“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions,” said Mike Novogratz, CEO and Founder of Galaxy.

While it revealed the deal’s termination, Galaxy Digital said it still plans to go public in the United States and eventually trade on the Nasdaq Global Select Market. The proposed listing was pushed to this year. Despite the onslaught in the digital currency ecosystem, the firm said the loss is now dependent on the completion of the SEC’s review and subject to stock exchange approval of such listing.

BitGo came off as a very well coveted startup for prominent players in the digital currency ecosystem at a time. Prior to the time when Galaxy Digital submitted its bid for the company, there were reports that Paypal also had its eye on the firm, as it was making its way into the digital currency ecosystem with new product suites back in 2020.


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BitGo Receives Regulatory Approval from Italy

More digital assets custody providers have won approval from the Italian financial regulator, the Organismo Agenti e Mediatori (OAM), to serve customers in Italy.  BitGo is another one.

According to documents from the Italian regulator, as seen on Tuesday, July 19, BitGo has been registered as a cryptocurrency service provider by the regulator, therefore cleared to offer digital wallet services to Italian customers in compliance with Italian laws.

As per the documents, the company’s German branch, BitGo Deutschland GmbH, was registered to provide crypto products in Italy on July 15.

This means that BitGo has met requirements from the Organismo Agenti e Mediatori (OAM), which oversees the activities of financial and brokerage firms in Italy and implements anti-money laundering controls.

BitGo is also licensed to offer services in South Dakota, New York, Switzerland, and Germany. The company disclosed that its applications to serve in a couple of other jurisdictions are still pending.

Others Expanding into Italian Market

BitGo’s entrance into the European nation follows a trend of other global cryptocurrency firms gaining approvals to operate in Italy.

On Tuesday, gained regulatory approval in Italy as part of its efforts to continue its expansion to new regions. The approval allowed the firm to provide a suite of products and services to Italian clients, open offices, and expand its national team.

Likewise, Coinbase was granted approval by the Italian regulator to operate as a crypto assets service provider in the country on Monday. The regulatory approval enabled Coinbase to continue providing crypto services in Italy and to bring new products to the market.

Also, the Organismo Agenti e Mediatori registered crypto exchanges such as Binance, Kraken, Bitpanda, and brokerage Trade Republic to operate in the country.

In light of the market’s rapid growth, the financial regulator recently introduced new requirements that mandate all crypto firms to meet the criteria before continuing to offer services in Italy.

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Avalanche eyes 60% rally as AVAX price breaks out of bull flag

Avalanche (AVAX) strengthened its case for a potential upside run towards $160 in the coming sessions as it broke out of a classic bullish pattern earlier this week.

Dubbed “bull flag,” the pattern emerges when the price consolidates lower/sideways between two parallel trendlines (flag) after undergoing a strong upside move (flagpole). Later, in theory, the price breaks out of the channel range to continue the uptrend and tends to rise by as much as the flagpole’s height.

AVAX went through a similar price trajectory across the last 30 days, containing a roughly 100% flagpole rally to nearly $150, followed by over a 50% flag correction to $72, and a breakout move above the flag’s upper trendline (around $85) on Dec. 15.

AVAX/USD daily price chart featuring Bull Flag pattern. Source: TradingView

AVAX price continued rallying after breaking out of its bull flag range, reaching almost $120 on Friday but eyeing a further leg up towards its bullish continuation target near $160. The level appeared after adding the height of AVAX’s flagpole, which is around $75, to the current breakout point near $85.

A week full of bullish AVAX events

The recent buying period in the Avalanche market picked momentum also because of a flurry of positive catalysts this week.

AVAX jumped nearly 10.50% on Tuesday as Avalanche added the native version of USDC, a dollar-pegged stablecoin issued by Circle, on its blockchain.

Additionally, a report penned by Bank of America analysts published on Dec. 10, called Avalanche a viable alternative to the leading smart contract platform Ethereum. That coincided with AVAX gaining another 16%.

AVAX/USD daily price chart featuring key events in the week ending Dec. 19. Source: TradingView

On Thursday, AVAX rallied to its two-week high after BitGo, a crypto custodian with over $64 billion worth of assets under management, announced that it would support the token.

Nonetheless, a modest selloff at the local price top pushed AVAX lower. Th recover Friday as Avalanche announced that it has collaborated with web3 accelerator DeFi Alliance to launch a gaming accelerator program.

All the events mentioned above pointed towards the Avalanche ecosystem’s growth. For instance, with USDC, the project promised to provide a viable alternative to Ethereum’s highly expensive Tether (USDT) stablecoin transactions.

Moreover, by gaining BitGo as AVAX’s institutional custodian, Avalanche appears to be prepping for catering to accredited investors. Mike Belshe, CEO of BitGo, explained:

“Institutional custody is not the same as retail custody, and BitGo wallets and custody were designed from the ground up to meet the needs of institutional investors, and BitGo is the only independent qualified custodian focused on building the right market structure and facilities to enable institutions to enter the digital asset space with confidence.”

AVAX price risks

One of the remaining downside risks around AVAX concerns the crypto market performance, on the whole.

In detail, AVAC rallied in a week that witnessed the entire cryptocurrency market capitalization lose more than $114 billion, with leading crypto assets Bitcoin (BTC) and Ether (ETH) plunging over 7% and 5% week-to-date. Concerns over the Federal Reserve’s tapering plans catalyzed the market selloff.

Therefore, it appears that traders looked at AVAX as their short-term hedge against the crypto market drop, largely driven by a string of positive news. 

AVAX/BTC weekly price chart. Source: TradingView

Moreover, the AVAX/BTC pair was up nearly 40% week-to-date at around 0.00245 BTC at the time of writing, with the pair’s relative strength index (RSI) entering overbought territory. That could prompt AVAX to weaken against BTC in the coming sessions.

Related: ‘Monster bull move’ means whales could secure the next Bitcoin price surge

A similar outcome may be possible in AVAX/USD’s case as its weekly RSI treads near overbought levels.

AVAX/USD weekly price chart. Source: TradingView

However, the pair is likely to retain its bullish bias as long as it holds above its 20-week exponential moving average (20-week EMA) as support. As shown in the chart above, the green wave has been capping AVAX’s downside attempts since August 2020.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.