DWF Labs affiliates sue BitGo for $141M over alleged token lock-up breach
CIE News ·
DWF Labs subsidiaries have sued custodian BitGo in London's High Court for $141 million, alleging it sold discounted FF and ESPORTS tokens ahead of an agreed three-month lock-up.
Two affiliates of market maker DWF Labs, DWF Maas and Falcon Digital, have filed a lawsuit in London’s High Court seeking $141 million in damages from custodian BitGo Holdings. According to reports from cryptotimes.io and Bitcoin.com News, the claim alleges that BitGo breached contractual lock-up restrictions by liquidating discounted Falcon Finance (FF) and ESPORTS tokens on public exchanges roughly two months before their initial three-month unlock date.
The plaintiffs argue that the discounted rates were conditional on the lock-up terms, which were intended to let DWF develop products and support liquidity. The lawsuit claims the unscheduled sales placed substantial downward pressure on illiquid markets, noting that FF dropped from approximately $0.08 in early March 2026 to $0.07 by late April, while ESPORTS fell from around $0.28 in mid-March to $0.07 by early June.
The claimants stated that the alleged sales caused $114 million in losses on their retained holdings and that BitGo had no contractual excuse for the transfers. The claims remain undetermined by the court, and BitGo declined to comment publicly on the matter.