DWF Labs Subsidiary Sues BitGo for Breach of OTC Agreement, Seeking $141 Million

On October 9, according to the Financial Times, DWF Labs’ entities DWF Maas and Falcon Digital have filed a lawsuit in the High Court in London against crypto custody firm BitGo, alleging breach of an over-the-counter (OTC) agreement by selling Falcon Finance (FF) and ESPORTS tokens before the agreed lock-up period expired, causing a drop in token prices. According to the complaint, the parties agreed on discounted pricing for the tokens, subject to a three-month lock-up period and subsequent phased unlocking arrangements. DWF alleges that BitGo transferred the tokens to exchanges approximately two months prior to the initial unlock date, generating market sell-off pressure and impairing the value of its remaining holdings, resulting in a $141 million damages claim. BitGo has declined to comment on the lawsuit, and the allegations have not yet been adjudicated by the court.

In earlier reporting, the $ESPORTS token plummeted by 92% in a flash crash. DWF Labs is suspected to be the market maker for ESPORTS, with associated addresses previously depositing approximately $13.9 million worth of tokens into Kraken.