DWF Labs Subsidiary Sues BitGo for $141 Million Over Alleged Breach of OTC Trading Agreement

BlockBeats news, October 9, according to the Financial Times, DWF Labs' DWF Maas and Falcon Digital have sued crypto custodian BitGo in the London High Court, accusing it of breaching an over-the-counter trading agreement by selling Falcon Finance (FF) and ESPORTS tokens before the agreed lock-up period ended, causing the token prices to fall.

According to the lawsuit, the parties agreed that the tokens would enjoy a discounted price but must comply with a three-month lock-up period and subsequent phased unlock arrangements. DWF claims that BitGo transferred the tokens to trading platforms about two months before the first unlock, creating market selling pressure and damaging the value of its remaining holdings, and is therefore seeking $141 million in damages.