BitGo sued for $141M by DWF Labs affiliates over token sales

DWF Labs affiliates, specifically DWF Maas and Falcon Digital, have filed a $141 million lawsuit against cryptocurrency custodian BitGo in London’s High Court. The plaintiffs allege that BitGo breached over-the-counter (OTC) agreements by prematurely releasing and selling locked tokens, specifically Falcon Finance (FF) and ESPORTS, before contractual restrictions and vesting periods had expired. The lawsuit claims these actions negatively impacted the market value of the tokens and caused significant financial harm to the plaintiffs.

Separately, the Ethereum market has faced significant volatility, with the price dropping toward the $2,500 support level. This downturn was driven by a combination of factors, including net outflows from U.S. spot Ethereum ETFs, rising Treasury yields, and a strong U.S. dollar. The price decline triggered massive liquidations in the derivatives market, with reports indicating that hundreds of millions of dollars in leveraged long positions were wiped out as the asset tested key psychological and technical support zones.