DWF Labs subsidiaries file $141 million lawsuit against BitGo for alleged early token sales
+1 new source since this summary was written
Two investment arms of market maker DWF Labs have taken BitGo to the High Court in London, seeking $141 million in damages. They allege the custodian sold Falcon Finance (FF) and ESPORTS tokens before the agreed three‑month lock‑up periods, causing the tokens’ market prices to fall. DWF says it raised the issue with BitGo in April and May but received no commitment to halt the sales.
Why it matters
The claim could expose BitGo to a large liability and may affect confidence in custodial services for token lock‑up agreements. If the court awards damages, BitGo could face a payout of up to $114 million, impacting its balance sheet and possibly prompting tighter contractual controls in the crypto custody market.
Key facts
- 1DWF Labs subsidiaries DWF Maas (British Virgin Islands) and Falcon Digital (Panama) filed a lawsuit in London's High Court seeking $141 million in damages. coindesk.com
- 2The claim states BitGo sold FF and ESPORTS tokens before the three‑month lock‑up periods expired. coindesk.com
- 3DWF is pursuing $114 million in damages based on the price declines of the tokens. coindesk.com
- 4FF token price fell from $0.08 in early March to about $0.07 by late April. finance.yahoo.com
- 5ESPORTS token price dropped from roughly $0.28 in mid‑March to $0.07 by early June. finance.yahoo.com
- 6DWF said it raised the issue with BitGo in April and May and proceeded with court action after receiving no undertaking. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.