On Friday, October 9, 2026, CoinDesk reported that two investment subsidiaries of crypto market maker DWF Labs have sued custodian BitGo in London’s High Court, alleging it breached the lock-up terms of a private token purchase. The Financial Times first reported the suit.
The plaintiffs, DWF Maas, based in the British Virgin Islands, and Panama-based Falcon Digital, say they agreed to sell Falcon Finance (FF) and ESPORTS tokens to BitGo at a discount, with the tokens to stay locked for three months.
The suit alleges BitGo sold the tokens before the lock-up periods ended, pushing prices lower. DWF said the discount depended on the tokens remaining locked, yet they were moved to exchanges about two months before the first unlock.
FF slipped from 8 cents at the start
FF slipped from 8 cents at the start of its lock-up in early March to about 7 cents by late April, while ESPORTS fell from roughly 28 cents in mid-March to 7 cents in early June. DWF is seeking $141 million in damages, arguing BitGo’s token sales caused direct losses through the fall in both tokens’ prices.
DWF said it raised the issue with BitGo in April and May and, with no commitment forthcoming, decided court action was necessary.
Private token sales are a common way in the digital asset industry for projects to raise capital while limiting the risk that buyers immediately sell.
DWF bought $25 million of WLFI tokens last
DWF bought $25 million of WLFI tokens last year, the native asset of World Liberty Financial, a crypto project backed by President Donald Trump and his family. The purchase drew concern from some Washington lawmakers over alleged links between DWF founder Andrei Grachev and Russia.
Grachev was chief executive of the Russian arm of exchange Huobi from 2018 to 2019. Huobi has been sanctioned in several jurisdictions for helping Russia evade Western sanctions.
