DWF Labs Affiliates Sue BitGo Over $141 Million Token Lock-Up Claim

DWF Labs affiliates DWF Maas and Falcon Digital have filed a $141 million claim against cryptocurrency custodian BitGo in London’s High Court, alleging that locked-up tokens were transferred or sold before their contractual release dates.

The dispute involves discounted over-the-counter purchases of Falcon Finance (FF) and ESPORTS tokens. DWF alleges the agreements required an initial three-month lock-up followed by staged releases, but that BitGo moved the tokens to exchanges roughly two months before the first scheduled unlock.

The affiliates claim the alleged transactions increased selling pressure in thin markets and reduced the value of tokens they continued to hold. FF fell from about $0.08 in early March 2026 to roughly $0.07 by late April, while ESPORTS declined from approximately $0.28 in mid-March to about $0.07 by early June. The allegations do not establish that the alleged transactions caused those price moves.

DWF Labs said it raised the issue with BitGo in April and May before taking legal action. “The discount BitGo received was conditional on the tokens remaining locked,” the firm said. BitGo declined to comment. The plaintiffs identify $114 million as direct damages within the broader $141 million claim; the allegations remain unresolved.