According to the Financial Times, DWF Maas and Falcon Digital, companies affiliated with DWF Labs, have filed a lawsuit against crypto custodian BitGo in the High Court of London, seeking $141 million in compensation.
According to the plaintiffs, BitGo purchased Falcon Finance (FF) and ESPORTS tokens from them at a discount on the OTC market, with the condition that these tokens would be locked—first for three months, followed by an additional unlocking schedule. However, BitGo allegedly transferred the tokens to exchanges approximately two months before the first unlock date and sold them, causing prices to plummet in the illiquid market and devaluing the remaining holdings held by DWF. During this period, ESPORTS dropped from $0.28 to $0.07, while FF fell from $0.08 to $0.07.
"The discount BitGo received was contingent upon the tokens remaining locked," DWF stated. BitGo had already filed claims in April and May but did not receive a response. At the same time, DWF says it still hopes for a settlement. BitGo declined to comment, and the allegations in court have not yet been proven.