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Oct 9, 2026

DWF Labs affiliates sue BitGo for $141 million over alleged early token sales

DWF Maas and Falcon Digital, affiliates of market maker DWF Labs, filed a lawsuit in London's High Court alleging BitGo sold discounted Falcon Finance and ESPORTS tokens approximately two months before their lock-up periods expired, causing significant losses.

Oct 9, 2026·6 sources
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Top claims

  • ▪World Liberty Trust Company received preliminary conditional approval from the Office of the Comptroller of the Currency on August 14, 2026 to take over issuance of World Liberty's USD1 stablecoin from BitGo
  • ▪DWF Labs affiliates raised concerns about premature token transfers with BitGo in April 2026 and May 2026 before filing the $141 million legal action in London's High Court
  • ▪In over-the-counter token sale agreements, buyers receive discounted digital assets in exchange for agreeing to lock-up and vesting periods that prevent immediate market sales

Topics

Crypto custody regulationToken launchesTokenomicsCrypto market integrity & manipulation

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