Cryptoupdated 1h ago2 min read
DWF Maas And Falcon Digital Sue BitGo For $141 Million Over Alleged Token Lock-Up Breach
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DWF Maas and Falcon Digital sue BitGo in London's High Court for $141 million. Plaintiffs allege BitGo sold FF and ESPORTS tokens before lock-ups expired, causing losses.
DWF sues BitGo in London
DWF Labs subsidiaries DWF Maas and Falcon Digital sued cryptocurrency custodian BitGo in London’s High Court seeking $141 million over an alleged token lock-up breach tied to Falcon Finance (FF) and ESPORTS tokens. DWF Maas and Falcon Digital alleged BitGo sold discounted FF and ESPORTS tokens before their three-month lock-up periods expired, and the plaintiffs said the early sales caused direct losses through the fall in the tokens’ prices.
DWF said it raised the issue with BitGo in April and May and pursued court action after BitGo did not provide an undertaking. DWF Maas said FF fell from 8 cents at the start of the lock-up in early March to around 7 cents by late April, while ESPORTS fell from about 28 cents in mid-March to 7 cents in early June.
Lock-up dispute and pricing
DWF Labs-linked firms argued that the discount BitGo received was conditional on the tokens remaining locked, and DWF said the tokens were moved to exchanges roughly two months before the first unlock. DWF also said, "We raised this with BitGo in April and May, and with no undertaking forthcoming, court action was necessary."
BitGo declined to comment on the allegations, and the allegations have not been proven in court. CoinMarketCap said the case centers on lock-up terms that restrict when token buyers can sell and can limit how much new supply reaches the market.
World Liberty ties and stakes
DWF Labs said it bought $25 million of WLFI tokens last year, and the project is described as the cryptocurrency project backed by President Donald Trump and his family. CoinDesk said the investment raised concerns among some lawmakers in Washington, D.C. due to alleged ties of DWF’s founder, Andrei Grachev, to Russia, and it said Grachev was CEO of Huobi’s Russian division between 2018 and 2019.
Cryptopolitan said BitGo became custodian of the reserves behind World Liberty’s USD1 stablecoin and is also responsible for minting and burning the stablecoins. Cryptopolitan added that the Office of the Comptroller of the Currency (OCC) granted preliminary conditional approval to World Liberty Trust Company for its national fiduciary bank on August 14, 2026, with final approval still depending on opening conditions and can be withdrawn.