DWF Labs sues BitGo for $141m over an alleged early token sale

Two DWF Labs subsidiaries, DWF Maas in the British Virgin Islands and Falcon Digital in Panama, filed in London's High Court against BitGo. They claim $141m, of which $114m is direct losses. The dispute concerns tokens sold to BitGo at a discount on condition they stayed locked for three months.

“The discount BitGo received was conditional on the tokens remaining locked, and they were moved to exchanges roughly two months before the first unlock”

— DWF Labs, Заявление по иску, 9 октября 2026

The discount is the whole case

A locked token is worth less than a free one, and the gap is the price of waiting. DWF says it sold Falcon Finance and ESPORTS tokens below market on that basis, and that BitGo moved them to exchanges about two months before the first unlock date.

If the allegation holds, BitGo kept the discount without holding the tokens. The lock-up started in early March 2026, so a three-month term ran to early June, and a sale two months early falls around early April.

The losses sit in one of the two tokens

ESPORTS went from roughly 28 cents in mid-March to 7 cents in early June, a fall of 75%. Falcon Finance went from 8 cents in early March to around 7 cents in late April, which is 12.5%. The claim is dominated by the first of those.

The $27m gap between the $141m total and the $114m of direct losses covers everything beyond the price difference itself.

The procedural history is short

The DWF Labs BitGo lawsuit followed two rounds of correspondence. DWF raised the matter with BitGo in April and again in May. BitGo declined to give an undertaking, and the claim followed. Nothing has been tested in court, and BitGo's account of the sales has not been published.

The same custodian turned up here two days ago

On 7 October we wrote about Ledger's new loan product, which takes wrapped bitcoin as collateral. wBTC is issued against bitcoin held by BitGo, and we counted 116,159 BTC sitting behind that wrapper.

A custody dispute over locked tokens says nothing about reserves held for a wrapper. The two landing in the same week is a property of how few custodians this market has, which is also why the question of who actually holds your coins keeps coming back. Until the court speaks, the lock-up dates and the two price series are the only checkable parts.

Informational material, not investment advice. The claim is unproven, nothing has been tested in court, and BitGo's account of the sales has not been published.