Two affiliates of market maker DWF Labs have sued digital-asset custodian BitGo for $141 million, alleging it sold tokens before contractual lock-ups expired.
The Financial Times reported on 9 October that DWF Maas and Falcon Digital filed the claim in London’s High Court. It described DWF Maas as British Virgin Islands-based and Falcon Digital as Panama-based. Both are part of Dubai-headquartered DWF Labs.
BitGo Holdings is listed on the New York Stock Exchange under the ticker BTGO. A $141 million claim is material to a company whose market capitalization has recently been reported near $850 million.
What the claim alleges
According to the Financial Times account of the filing, DWF and Falcon agreed to sell Falcon Finance tokens to BitGo at a discount, subject to a three-month lock-up followed by further vesting. A separate agreement with the same structure covered ESPORTS tokens, used for electronic sports and gaming.
The plaintiffs allege BitGo transferred or sold the tokens to exchanges roughly two months before the first unlock. DWF said, “The discount BitGo received was conditional on the tokens remaining locked.” It said it raised the issue with BitGo in April and May before filing suit and that it remains open to a resolution.
In the claim, DWF said there was no contractual excuse for the transfers or sales. It described the Falcon Finance sales as sudden and unexpected and said they flooded a thin market and reduced the token’s price. The lock-ups, the plaintiffs said, were intended to give DWF time to launch products and improve liquidity during the restricted period.
Falcon Finance is a DWF Labs incubation
DWF Labs incubated Falcon Finance. The firm’s own case study describes the relationship as full-stack incubation, covering go-to-market, tokenomics, and market making.
Andrei Grachev, a DWF Labs co-founder, is also managing partner of Falcon Finance. Falcon Finance was founded and backed by the same team behind DWF Labs, and DWF Labs bought $25 million of World Liberty Financial’s governance token in a private transaction around the same period that World Liberty invested in Falcon.
The suit is therefore a claim by affiliates of the market maker that incubated one of the two tokens against a custodian that bought those tokens under a lock-up.
The price moves
CoinMarketCap’s historical data for Falcon Finance shows a close of $0.07888 on 1 March 2026, after an open of $0.08035 that day. By 24 March the close was $0.07179. CoinMarketCap reported a fall from about $0.08 in early March, when the first lock-up was agreed, to about $0.07 by late April. The March closes on CoinMarketCap are consistent with that direction.
For ESPORTS (Yooldo), CoinMarketCap shows closes of about $0.30 to $0.31 in early March 2026, including $0.3088 on 1 March and $0.3088 on 11 March. The Financial Times, citing CoinMarketCap, reported a fall from about $0.28 in mid-March to $0.07 by early June, around the period when DWF alleges BitGo sold the tokens. The early-March level is close to the figure the Financial Times used. An early-June close was not independently extracted from CoinMarketCap for this story.
DWF is seeking $141 million. It says the alleged sales caused direct losses through the fall in the value of the Falcon Finance and ESPORTS tokens it still held.
The status of the case
The allegations have not been determined by a court. A claim is one side’s account. BitGo will have the opportunity to file a defense. No hearing date or case number was published in the material reviewed.
The prior World Liberty purchase
The Financial Times reported that DWF last year bought $25 million of tokens created by World Liberty Financial, the crypto venture backed by Donald Trump and his sons. World Liberty is not named as a party to the BitGo claim. The Crypto Times reported in September that World Liberty had unwound most of a token reserve after planned integrations had not launched.
