DWF Labs Affiliates Sue BitGo for $141 Million Over OTC Deal

DWF Labs affiliates DWF Maas and Falcon Digital have sued crypto custodian BitGo in London’s High Court, seeking $141 million over an alleged breach of an over-the-counter token agreement.

The companies allege BitGo transferred Falcon Finance (FF) and ESPORTS tokens to exchanges about two months before the first scheduled unlock. DWF Maas and Falcon Digital claim the move increased selling pressure, pushed token prices lower and reduced the value of their remaining holdings.

The agreement provided discounted token pricing in exchange for a three-month lockup followed by staged releases, according to the claim. The plaintiffs allege BitGo sold or moved the tokens before those conditions were met.

BitGo declined to comment on the lawsuit. The allegations have not been determined by the court.