Bakkt Faces Class Action Lawsuit by Investors

BlockBeats News, April 5th, a group of investors sued the U.S.-based crypto custody and trading platform Bakkt, alleging that it made false or misleading statements without sufficiently disclosing its heavy reliance on key customers such as Webull. The lawsuit, led by investor Guy Serge A. Franklin, was filed on April 2nd in the Southern District of New York federal court and demands a jury trial. The plaintiffs claim that Webull accounted for 74% of Bakkt's crypto service revenue from 2023 to 2024, while Bank of America represented 17% of its loyalty service revenue in the first three quarters of 2024. The termination of the partnership between the two companies is expected to result in a drastic 73% decline in the company's overall revenue. The defendants also include the company's former CEO Gavin Michael, current CEO Andrew Main, and interim CFO Karen Alexander. Investors believe that Bakkt failed to timely disclose the risks associated with the termination of contracts with key customers, violating U.S. securities laws and causing significant losses.