DWF Labs-Linked Firms Sue BitGo for $141M Over Early Token Sales

Two DWF Labs affiliates, DWF Maas and Falcon Digital, have sued BitGo in London’s High Court for $141M. They allege the custodian bought Falcon Finance (FF) and ESPORTS tokens at a discount in OTC deals and then sold them before the lock-ups expired.

The agreements reportedly set a three-month lock followed by further vesting. The plaintiffs say the early sales pushed prices down and hurt the value of their remaining holdings. ESPORTS crashed more than 90% in about two hours in May, and on-chain analysis at the time traced part of that selling to wallets linked to DWF Labs.

Nothing so far connects that crash to the BitGo deals, but the market maker most often accused of dumping is now suing someone else for dumping.

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