DWF Labs Entity Sues BitGo for $141 Million, Alleging Breach of Token Lock-Up Agreement

Odaily News: DWF Maas and Falcon Digital, investment entities under market maker DWF Labs, have filed a lawsuit against crypto custody firm BitGo in the London High Court, alleging breach of token sale lock-up clauses and seeking approximately $141 million in damages.

The two companies claim they previously sold Falcon Finance (FF) and ESPORTS tokens to BitGo at a discounted price with a three-month lock-up period, but BitGo sold the tokens before the lock-up period ended, causing token prices to decline and resulting in losses. DWF stated that BitGo's token sales caused both tokens' prices to drop, directly resulting in approximately $114 million in losses.

It is reported that the FF token price was approximately $0.08 when the lock-up began in March and fell to approximately $0.07 by the end of April; the ESPORTS token dropped from approximately $0.28 in mid-March to approximately $0.07 by early June. DWF claims that the discount BitGo received was conditioned on the tokens remaining locked up, and alleges that its tokens were transferred to exchanges approximately two months before the first unlock.

BitGo and DWF Labs have not yet commented. (FT)