DWF Labs affiliates sue BitGo for $141 million over alleged early token sales
Affiliates of crypto market maker DWF Labs have filed a $141 million lawsuit in London against custodian BitGo, alleging it breached over-the-counter contracts by selling locked tokens before their vesting periods ended.
British Virgin Islands-based DWF Maas and Panama-based Falcon Digital, affiliates of Dubai-headquartered market maker DWF Labs, have sued digital asset custodian BitGo in London's High Court, according to a Financial Times report. The plaintiffs are seeking $141 million in damages, alleging BitGo breached over-the-counter agreements by offloading tokens before their contractual lock-ups expired.[4][2][5]
The lawsuit centers on transactions involving Falcon Finance (FF) tokens and gaming-focused ESPORTS tokens, which crypto.news identified on Solana under contract address AMs3eNu8i633ey9Fe3RbDBDQq2Bnc6P3ceP3ztmrpump. Under the terms of the deals, BitGo purchased the tokens at a discount subject to an initial three-month lock-up followed by subsequent vesting restrictions. DWF Maas and Falcon Digital allege that BitGo violated those terms by selling the tokens early, driving down their market prices and reducing the value of the plaintiffs' remaining holdings.[4][1][5][3]
The Financial Times reported that the two plaintiff entities have ties to the Trump family-backed venture World Liberty Financial. BitGo declined to comment on the litigation, and the allegations have not yet been proven in court.[4][2]
Key facts
- DWF Maas and Falcon Digital, affiliates of Dubai-based DWF Labs, filed a $141 million lawsuit against BitGo in London's High Court.
- The plaintiffs claim BitGo breached over-the-counter contracts by selling Falcon Finance and ESPORTS tokens before lock-up periods expired.
- The contested agreements required an initial three-month lock-up followed by additional vesting periods.
- The lawsuit alleges the premature sales created downward price pressure that devalued DWF's remaining token holdings.
- DWF Maas is registered in the British Virgin Islands and Falcon Digital in Panama, and both have links to World Liberty Financial, according to the Financial Times.
- BitGo declined to comment on the lawsuit, and the claims remain unproven in court.
Sources · 5 sources
- CN
crypto.news@cryptodotnewsPost on X ·
JUST IN: DWF Labs-linked firms seek $141M from BitGo over alleged early token sales The lawsuit claims BitGo sold $FF and solana:AMs3eNu8i633ey9Fe3RbDBDQq2Bnc6P3ceP3ztmrpump before agreed lock-ups expired, violating terms that required a three-month hold followed by further vesting.
Open source - BS
BSCN@BSCNewsPost on X ·
BitGo Faces $141M Lawsuit Over Falcon Finance And ESPORTS Tokens DWF Labs (@DWFLabs) affiliates are seeking $141 million from BitGo in a London High Court lawsuit, according to the Financial Times. According to the claims, BitGo traded the tokens of Falcon Finance (@falconfinance) and ESPORTS ahead of lock-up periods. It is claimed that such actions violated the terms of contract and reduced the value of their assets. These claims have not been proven yet. Source: Financial Times
Open source - CB
Crypto Briefing@Crypto_BriefingPost on X ·
🚨 NEW: DWF Labs affiliates are seeking $141 million from BitGo, alleging early sales of Falcon Finance and ESPORTS tokens breached lock-up agreements and drove down prices. https://t.co/M33smwwahf
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
FT: DWF Labs Sues BitGo for $141 Million Over Alleged Early Sales of Locked Tokens According to the Financial Times, DWF Labs affiliates DWF Maas and Falcon Digital have sued crypto custodian BitGo in London's High Court, seeking $141 million in damages. The plaintiffs allege that BitGo breached OTC agreements by selling Falcon Finance (FF) and ESPORTS tokens before their agreed lock-up periods expired, putting downward pressure on token prices and reducing the value of DWF's remaining holdings. The agreements included an initial three-month lock-up followed by additional vesting restrictions. BitGo declined to comment on the lawsuit. The allegations have not been proven in court.
Open source - TB
The Block@TheBlockCoPost on X ·
NEW: DWF Labs affiliates are seeking $141 million in damages from BitGo, alleging it sold Falcon Finance and ESPORTS tokens before contractual lock-ups expired, the FT reported. The agreements included an initial three-month lock-up followed by additional vesting periods, according to the lawsuit.
Open source