Two entities associated with the market maker DWF Labs filed a lawsuit against digital asset custodian BitGo on October 2, 2026. The plaintiffs allege that BitGo breached a token lock-up agreement by releasing tokens before the designated period expired, which they claim negatively impacted market value.
The lawsuit seeks damages of $141 million. The plaintiffs argue that the premature release of a large block of tokens caused a price decline. BitGo, founded in 2013, has not issued a public statement regarding these allegations as of October 9, 2026.
This legal action adds to existing disputes involving BitGo. The company is currently engaged in a breach-of-contract conflict with Galaxy Digital regarding a terminated merger valued at $1.2 billion, with potential claims exceeding $100 million. Additionally, BitGo faces a federal securities class action filed in June 2026 following its IPO.
The cumulative effect of these legal challenges represents a significant financial exposure for the company. Market participants are now awaiting BitGo’s formal response to determine the company's position on the contract terms and the specific tokens involved in the dispute.
