Switch to seedless. Get 30% off with SWITCH30 till Oct 12BitGo hit with $141M lawsuit over early token sales
6.6 Regulation BitGo faces a $141M lawsuit for allegedly selling locked tokens early, causing their value to drop. The case highlights the importance of honoring token lock-up agreements in crypto.
BitGo is facing a $141 million lawsuit in London’s High Court from DWF Maas and Falcon Digital, subsidiaries of DWF Labs. The dispute centers on claims that BitGo breached over-the-counter agreements by selling Falcon Finance and ESPORTS tokens before the agreed three-month lock-up and vesting periods expired. The plaintiffs allege that BitGo transferred or sold the tokens to exchanges about two months before the first unlock date. They argue this early sale caused a significant drop in the tokens’ market value, eroding the value of their remaining holdings. The tokens were reportedly purchased at a discount, conditional on the lock-up period being honored. BitGo has not publicly commented on the lawsuit, and the allegations have not been tested in court. The case underscores the importance of strict adherence to token lock-up agreements in the crypto industry and may have broader implications for custodians handling such arrangements.
