Two subsidiaries of the crypto market maker DWF Labs, specifically DWF Maas and Falcon Digital, have initiated legal action against the custodian BitGo. The lawsuit, filed in London’s High Court, involves a dispute valued at $141 million.
The plaintiffs allege that BitGo breached the terms of an over-the-counter agreement regarding Falcon Finance and ESPORTS tokens. According to the claim, BitGo received tokens at a discount with a commitment to hold them until the expiration of vesting periods.
The lawsuit asserts that BitGo transferred the tokens to exchanges approximately two months before the scheduled unlock date. DWF Labs argues that this action created significant downward pressure on the market, which negatively impacted the value of the remaining tokens held by the firms.
DWF Labs reportedly attempted to resolve the matter with BitGo in April and May before filing the lawsuit. BitGo, which manages approximately $5 billion in assets and recently went public on the NYSE with a valuation of around $2 billion, has declined to comment on the allegations.
Both companies maintain connections to the World Liberty Financial project. DWF Labs previously purchased $25 million worth of WLFI tokens, while BitGo serves as the custodian for the reserves backing the project’s USD1 stablecoin.
