Two companies connected to crypto market maker DWF Labs have filed a $141 million lawsuit against digital-asset custodian BitGo in London’s High Court, alleging that BitGo sold locked-up tokens before it was allowed to do so under a private deal.
Dispute centers on Falcon Finance and ESPORTS tokens
DWF Maas and Falcon Digital claim BitGo received Falcon Finance (FF) and ESPORTS tokens at a discounted price in an over-the-counter transaction. In return, the firms say, BitGo agreed not to sell the assets until the applicable lock-up and vesting periods had ended.
The lawsuit alleges that BitGo moved the tokens to cryptocurrency exchanges about two months before the first scheduled unlock. DWF-linked entities argue that selling into a market with limited liquidity placed substantial downward pressure on the tokens’ prices and reduced the value of the holdings they still owned.
According to Decrypt, the firms raised their concerns with BitGo in April and May. They then brought the case after they say the custodian did not provide assurances addressing the issue. BitGo declined to comment, according to the report, and the allegations have not been tested in court.
A dispute between major crypto institutions
The case brings two prominent participants in the digital-asset industry into conflict. BitGo is a major cryptocurrency custodian, holding approximately $5 billion in assets under custody. The company listed on the New York Stock Exchange this year at a valuation of about $2 billion and has also acquired NYDIG’s institutional trading business.
DWF Labs, which is headquartered in Dubai, operates as a market maker and investor across the token market. Market makers typically provide trading liquidity, but the lawsuit concerns the alleged handling of tokens subject to contractual restrictions rather than BitGo’s broader custodial activities.
The legal action is significant because token lock-ups and vesting schedules are designed to limit when assets can enter the market. The plaintiffs’ claim is that an early sale affected not only the tokens allegedly transferred by BitGo, but also the market value of the tokens that remained in their possession. The court will determine how the contractual arrangements and alleged transactions should be assessed.
Links to World Liberty Financial
The parties also share connections to World Liberty Financial, a crypto venture backed by the Trump family. DWF Labs purchased $25 million of the venture’s WLFI token last year.
BitGo, meanwhile, serves as custodian of the reserves supporting World Liberty Financial’s USD1 stablecoin. World Liberty is now moving toward taking over that function through its own recently approved trust bank.
Moneyiar market picture
Moneyiar market data at 11:49 a.m. on October 11, 2026, showed Solana at $109.4651503697, down 0.26% over 24 hours and 9.72% over seven days. Chainlink stood at $12.883249176, down 0.4% and 8.63% over the same periods.
Ondo was priced at $0.4844970758 at 11:48 a.m., down 3% in 24 hours and 1.26% over seven days. Monad traded at $0.0256087335 at 11:49 a.m., up 3.79% over 24 hours but down 23.66% across seven days.
