Image Credit: bitgo.com
- Two companies linked to DWF Labs sued BitGo for $141 million in London's High Court for allegedly selling restricted tokens early.
- The plaintiffs claim BitGo transferred or sold FF and ESPORTS tokens through exchanges roughly two months before the first scheduled unlock.
- BitGo declined to comment, and the claims have not yet been tested or proven in court.
Two companies linked to crypto market maker DWF Labs have sued BitGo for $141 million, alleging the digital asset custodian sold restricted tokens before contractual lock-up periods had expired.
DWF Maas and Falcon Digital filed the claim in London’s High Court. The dispute involves private sales of Falcon Finance’s FF token and Yooldo’s ESPORTS token, which BitGo allegedly bought at discounted prices in exchange for accepting restrictions on when they could be sold.
DWF Says Tokens Moved Two Months Before First Scheduled Unlock
The agreements included an initial three-month lock-up followed by staged vesting, according to the claim.
The plaintiffs allege BitGo transferred or sold FF and ESPORTS through exchanges roughly two months before the first scheduled unlock. They say the discount BitGo received depended on the tokens remaining locked for the agreed period.
DWF says it raised concerns with BitGo in April and May before taking the dispute to court. The full quantities involved, execution prices and transaction-by-transaction records have not been disclosed publicly.
$141M Claim Includes Losses On Remaining Token Holdings
DWF Maas and Falcon Digital argue that the alleged early sales increased selling pressure and reduced the market value of tokens they still held.
The plaintiffs say the restrictions were intended to give the projects time to develop products and improve market liquidity before additional supply became available.
Their $141 million demand represents damages they attribute to the alleged breach rather than the face value of the tokens BitGo received.
BitGo Declines to Comment as London High Court Case Begins
BitGo declined to comment on the allegations. The company has not been found liable, and the claims made by DWF Maas and Falcon Digital have not been tested in court.
The case will now turn on the contractual restrictions attached to the private token purchases, whether BitGo disposed of assets before those restrictions expired and whether any breach caused the $141 million in losses claimed by the plaintiffs.
