BitGo sued by DWF Labs subsidiaries for $141 million

Two subsidiaries of the cryptocurrency market maker DWF Labs have filed a lawsuit against the digital asset custodian BitGo in the High Court of London, seeking approximately $141 million in damages.

The legal action alleges that BitGo breached contract terms regarding the sale restrictions, or “lock-ups,” of two specific tokens: Falcon Finance (FF) and ESPORTS. According to the claimants, BitGo received these tokens at a discounted price on the condition that they would not be sold for a set period, initially specified as three months.

DWF Labs subsidiaries claim that BitGo moved the tokens to exchanges roughly two months before the first scheduled release of restrictions. They argue that this premature sale in markets with low liquidity caused the token prices to drop significantly, resulting in direct financial losses for the holders. The plaintiffs stated they attempted to resolve the issue with BitGo in April and May but proceeded with litigation after failing to receive necessary assurances.