Two firms linked to crypto market maker DWF Labs have sued custodian BitGo for $141 million in London’s High Court, alleging it sold tokens it had agreed to hold.
The Financial Times reported the suit on Friday. BitGo declined to comment. None of the allegations has been tested in court.
What the firms allege
The plaintiffs, DWF Maas and Falcon Digital, say the dispute stems from a private over-the-counter deal involving Falcon Finance (FF) and ESPORTS tokens.
According to the claim, BitGo received the tokens at a discount in return for a commitment not to sell them until their lock-up and vesting periods had ended. The firms allege that BitGo instead moved the tokens to exchanges about two months before the first unlock.
They argue that selling into a thin market put heavy pressure on prices and reduced the value of the tokens they still held. They say they raised the issue with BitGo in April and May 2026, and filed suit when BitGo did not give them assurances. How the $141 million figure was calculated has not been reported.
Who is involved
BitGo is a major institutional custodian, holding about $5 billion in assets. It listed on the New York Stock Exchange this year at a valuation of roughly $2 billion, and recently bought NYDIG’s institutional trading arm.
DWF Labs is a Dubai-based market maker that trades and invests in a wide range of tokens.
Both sides have ties to World Liberty Financial, the Trump family-backed crypto venture. DWF bought $25 million of World Liberty’s WLFI token last year, and BitGo custodies the reserves behind World Liberty’s USD1 stablecoin, a role World Liberty is moving to take over through its own newly approved trust bank.
Why it matters
Discounted OTC deals with lock-ups are a common way for projects to place tokens with large buyers. They depend on the buyer keeping its promise not to sell early. A claim that a major regulated custodian broke one, if it were proven, would raise questions about how those deals are enforced. For now, it remains one side’s account.
