BitGo faces London court claim from DWF Labs affiliates over token lock-up breach
Two DWF Labs investment units, DWF Maas and Falcon Digital, have filed a London High Court claim against crypto custodian BitGo. They allege BitGo sold discounted FF and ESPORTS tokens ahead of agreed three-month lock-ups, which they say hurt token prices and caused losses. The subsidiaries are seeking $114 million in damages, while coverage describes the overall lawsuit value as $141 million.
DWF Maas, based in the British Virgin Islands, and Panama-based Falcon Digital are the claimants. They allege they sold FF and ESPORTS tokens to BitGo at a discount on condition the assets remained locked for three months. The tokens reportedly reached exchanges about two months before the first unlock. DWF said it raised the matter in April and May, then sued after no commitment was provided.
The claim seeks $114 million in direct losses; coverage values the overall lawsuit at $141 million. FF was cited at 8 cents in early March and about 7 cents by late April, while ESPORTS reportedly dropped from roughly 28 cents in mid-March to 7 cents by early June.
If the allegations are proven, the case could heighten scrutiny of crypto custodians and lock-up arrangements, potentially affecting token issuers, market makers, exchanges, and investors who rely on such safeguards. Holders of FF and ESPORTS may already have suffered price declines, while the dispute could make counterparties more cautious about discounted token deals. It may also draw regulatory attention to custody practices and cross-border investment ties, though the court's findings will determine any broader consequences.