DWF Labs-Linked Firms Sue BitGo for $141M Over Early Token Sales

DWF Labs subsidiaries sued BitGo for $141 million, alleging the custodian sold locked-up tokens early, causing their value to drop. The case is before London's High Court. BitGo declined to comment. Both companies have ties to World Liberty Financial.

DWF Labs' affiliates sued BitGo for $141M, alleging early sales of discounted tokens (FF and ESPORTS) before lock-up periods ended. DWF claims BitGo breached agreements, causing token value declines. BitGo has not commented. FF and ESPORTS tokens saw price drops during the period in question, according to CoinMarketCap.

DWF Labs subsidiaries DWF Maas and Falcon Digital are suing BitGo for $141 million, alleging the crypto custodian sold FF and ESPORTS tokens before their lock-up periods ended, causing price drops. DWF claims this breach led to $114 million in damages and says it pursued legal action after BitGo did not address the issue. DWF had previously invested $25 million in WLFI tokens, linked to a Trump-backed crypto project.

DWF Labs subsidiaries sued BitGo for $114 million, alleging breach of token lock-up agreements for Falcon Finance (FF) and ESPORTS tokens. The lawsuit claims BitGo sold tokens early, causing price declines. DWF seeks compensation, citing financial losses from unauthorized sales. BitGo has not responded to requests for comment.

BitGo (BTGO) and HashKey Cloud partnered to expand staking, trading, custody, and tokenization services for institutional clients in Asia-Pacific. HashKey Cloud will validate Ethereum and Solana staking on BitGo's platform. BTGO shares trade at $7.30, down from a 52-week high of $24.50.

Grayscale added BitGo as a custodian for its Hyperliquid staking ETF (HYPG), which manages $217.8 million in assets. The HYPE token price rose 3.74% following new CFTC crypto rules. HYPG stakes 89-91% of its tokens, with a net yield of 1.69% after fees.