DWF Labs Affiliate Sues BitGo for $141M Over Alleged OTC Agreement Breach

On October 9, according to the Financial Times, DWF Maas and Falcon Digital, affiliates of DWF Labs, have filed a lawsuit against crypto custody firm BitGo at the High Court of London, alleging breach of an over-the-counter (OTC) agreement. The suit claims BitGo sold Falcon Finance (FF) and ESPORTS tokens before the agreed lock-up period ended, causing token prices to decline. According to the filing, the parties agreed on discounted token prices subject to a three-month lock-up period and subsequent staged unlock schedule.

DWF alleges that BitGo transferred tokens to exchanges approximately two months before the first unlock, creating selling pressure in the market and impairing the value of its remaining holdings, thus claiming $141 million in damages. BitGo declined to comment on the litigation, and the allegations have not yet been determined by the court.

[TechFlow]