DWF Labs subsidiaries sue BitGo for $141 million over alleged token lock-up breach
CoinDesk 2026-10-09 12:23:54
Context: DWF Labs subsidiaries DWF Maas and Falcon Digital have sued cryptocurrency custodian BitGo in London's High Court, alleging that BitGo breached a token sale's lock-up terms by selling discounted FF and ESPORTS tokens before their three-month lock-up periods expired. The lawsuit claims that BitGo's early sales caused the tokens' prices to fall sharply, resulting in $114 million in damages. The dispute centers around a private token sale, a common practice in the digital asset industry, where DWF Maas and Falcon Digital agreed to sell tokens at a discount to BitGo.
Key Facts
- DWF Labs subsidiaries DWF Maas and Falcon Digital are suing BitGo for $141 million over an alleged breach of a token sale's lock-up terms in a lawsuit filed in London's High Court.
- BitGo allegedly sold discounted FF and ESPORTS tokens before their three-month lock-up periods expired, causing the tokens' prices to fall sharply.
- The price of FF fell from 8 cents at the start of the lock-up in early March to around 7 cents by late April, while ESPORTS fell from about 28 cents in mid-March to 7 cents in early June.
- DWF Maas and Falcon Digital are seeking $114 million in damages, arguing that BitGo's token sales resulted in direct losses through the fall in both tokens' prices.