Two companies connected with DWF Labs have sued BitGo in London’s High Court, seeking $141 million over allegations that the custodian sold Falcon Finance and ESPORTS tokens before contractual lockups expired.
The Financial Times reported that DWF Maas and Falcon Digital claim the tokens were sold to BitGo at discounts subject to a three-month lockup and additional vesting restrictions. The plaintiffs allege that premature sales depressed the tokens’ prices and caused losses.
The case exposes a recurring risk in over-the-counter token transactions. Discounted allocations often rely on custody controls, transfer restrictions, side agreements, and vesting schedules that are not visible to public-market participants. A dispute over execution can therefore affect token supply before holders understand the contractual terms.
BitGo declined to comment to the Financial Times. The claims are allegations, not judicial findings, and no ruling has established that BitGo breached a contract or caused the asserted damages.
TOKEN RECON ASSESSMENT
The filing is consequential because it tests whether lockups in large private token transactions were operationally enforced by a major custodian. The court record, BitGo’s response, wallet evidence, and the contracts themselves will determine whether the dispute reflects a control failure, a contractual disagreement, or an unsupported claim. Token price declines alone cannot establish causation.
Source
Financial Times, DWF-linked firms sue BitGo for $141 million
