A big legal fight has started in the crypto world. Two investment firms tied to Web3 firm DWF Labs have sued crypto custodian BitGo. The lawsuit was filed in the High Court in London. The plaintiffs are asking for 141 million dollars in money damages. They say BitGo broke a written deal about selling special digital tokens.
The two firms bringing the lawsuit are DWF Maas and Falcon Digital. Both companies are based in Dubai. They work closely with DWF Labs. The fight centers on two specific crypto coins. Those coins are Falcon Finance, known as FF, and a gaming coin called ESPORTS.
According to court papers, BitGo agreed to buy these digital tokens at a cheap price in private deals. But there was a clear rule tied to the deal. BitGo had to keep the tokens locked away for three months. This kind of deal is known as a lock-up agreement. In the crypto world, lock-up deals help protect young projects. They stop large buyers from dumping big piles of coins into the market all at once. That gives project creators time to build their tools. It gives them time to find more users.
However, the lawsuit claims that BitGo did not wait for the lock-up time to end. The plaintiffs say that BitGo moved the cheap tokens onto public crypto exchanges about two months early. DWF claims that dumping these tokens on the open market caused prices to crash. Both FF and ESPORTS trade in small markets with limited buyer demand. When a large seller dumps coins into a thin market, prices often fall very fast.
Market numbers show that the price of both tokens dropped sharply during the spring of 2026. The FF token fell from about eight cents in March to seven cents in April. The ESPORTS token took a much bigger hit. It fell from about twenty-eight cents in mid-March down to just seven cents by early June. That was a drop of about 75 percent in value. DWF claims that these early sales hurt the value of all the remaining tokens they still held.
Out of the 141 million dollars demanded in the lawsuit, about 114 million dollars is meant to cover losses on tokens that DWF still holds. DWF argues that it never would have sold the tokens at a cheap price if it knew BitGo would sell them early. DWF stated that it spoke with BitGo bosses in April and May to fix the issue peacefully. But when those talks failed to reach an agreement, court action became necessary. DWF also noted that it remains open to settling the case outside of court.
BitGo is one of the oldest and largest crypto storage firms in the world. The company provides secure digital vaults for big financial firms and crypto businesses. In January 2026, BitGo went public on the New York Stock Exchange under the ticker symbol BTGO. This lawsuit comes during an important year for the company as it expands its business.
As of today, BitGo has not made any public comments about the lawsuit. The company has not posted any statements on its official social channels or websites. The legal claims made by DWF have not yet been proven in court. A judge will need to review the written contracts. The judge will inspect blockchain trading records to decide what really happened. This court battle highlights an important issue for the crypto industry. Private deals with lock-up rules are very common across the digital asset world. Creators often give discounts to big firms in exchange for promises not to sell right away. If courts enforce these lock-up deals strictly, big buyers will have to be much more careful with how they handle discounted tokens in the future. Both sides are waiting for the court to set a hearing date.