DWF Labs subsidiaries DWF Maas and Falcon Digital have sued cryptocurrency custodian BitGo in London’s High Court, alleging it breached agreements covering discounted sales of Falcon Finance and ESPORTS tokens.
The subsidiaries say the token sales were subject to three-month lock-up periods, but BitGo sold the digital assets before those periods expired. They are seeking $114 million in damages, arguing that the sales caused the tokens’ prices to fall sharply and created direct losses.
DWF says it raised the issue with BitGo in April and May. The subsidiaries pursued legal action after BitGo did not provide an undertaking, while the case centers on whether the alleged early sales violated the contracts.