DWF Maas and Falcon Digital filed the claim in the High Court, accusing BitGo of breaching agreements covering Falcon Finance’s FF token and ESPORTS tokens. They contend that premature transfers to cryptocurrency exchanges depressed prices and reduced the value of tokens they held.
The disputed transactions involved token allocations sold to BitGo at discounted prices. Under the arrangements described by the claimants, the assets were subject to an initial three-month lock-up, followed by a phased release schedule restricting when further holdings could enter circulation.
The companies allege that BitGo moved tokens to exchanges two months before the first permitted release. Their case rests on the assertion that the transfers breached the agreed restrictions and contributed directly to losses on their remaining positions.
BitGo declined to comment on the allegations. The claims have not been established by a court, and no judicial finding of contractual wrongdoing or liability has been announced.
The litigation brings a disagreement over private cryptocurrency trading arrangements before an English court, where the parties’ contractual obligations and evidence concerning the disputed transactions will be central to the case. A transfer to an exchange does not, by itself, establish that every token transferred was sold.
DWF Labs, a Dubai-based market maker and digital asset investor, is linked to both claimant companies. DWF Maas is registered in the British Virgin Islands, while Falcon Digital is registered in Panama. The lawsuit names those entities as claimants rather than DWF Labs itself.
The claimants argue that the discounted pricing was conditional on the tokens remaining subject to the agreed restrictions. They maintain that the lock-up was an essential part of the bargain, not merely an indicative timetable for future trading.
They further allege that sales into markets with limited liquidity placed downward pressure on token prices. Their damages claim concerns the reduced value of holdings that remained with them, rather than simply the proceeds from any tokens allegedly disposed of by BitGo.
DWF representatives said concerns were raised with BitGo during April and May, but the company did not provide the assurances sought. The claimants have indicated that they remain open to resolving the disagreement, despite taking the dispute to court.
The precise volumes involved in the contested transfers, the prices obtained and the methodology behind the full damages demand have not been established. Those details matter because movements in cryptocurrency prices can reflect several influences, including broader trading conditions and changes in available supply.
The distinction between a contractual breach and the financial consequences alleged is significant. Even if prohibited transfers are demonstrated, the claimants would still need to substantiate the losses for which they seek compensation and connect those losses to BitGo’s conduct.
The two sides also have connections to World Liberty Financial, the cryptocurrency venture associated with US President Donald Trump’s family. Those relationships are distinct from the token agreements at issue in the London proceedings, and World Liberty Financial is not identified as a party to the claim.
DWF Labs announced a $25 million investment in World Liberty Financial’s WLFI token in 2025. BitGo, meanwhile, has been involved in issuing the venture’s USD1 stablecoin and providing custody services for assets supporting it.
USD1 is designed to maintain a value equivalent to one US dollar through reserve assets. BitGo’s role in that arrangement concerns stablecoin infrastructure and custody, rather than the FF and ESPORTS tokens forming the basis of the litigation.
Falcon Finance and ESPORTS are separate digital assets, and the proceedings concern restrictions attached to their private distribution. The agreements described in the claim combined discounted acquisition prices with limits on immediate resale, a structure intended to prevent large allocations reaching public markets at once.
The claimants say the restrictions also allowed time to develop products intended to improve liquidity for the tokens. Their argument is that an accelerated release disrupted that timetable and exposed their remaining holdings to a market impact they had sought to avoid.
The case was disclosed on 9 October. The publicly described allegations concern transfers and sales said to have occurred before the agreed unlocking dates, with the claimants pursuing compensation through civil proceedings, not criminal proceedings at present.
Arabian Post – Crypto News Network
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