DWF Labs subsidiaries sue BitGo over token lock-up breach

DWF Labs subsidiaries DWF Maas and Falcon Digital have sued crypto custodian BitGo in London's High Court, alleging it sold Falcon Finance (FF) and ESPORTS tokens before their agreed three-month lock-up periods expired, per the Financial Times. DWF is seeking $114 million in damages in a claim reported at $141 million, arguing BitGo's early sales sent both tokens' prices tumbling — FF fell from about 8 cents in early March to roughly 7 cents by late April, while ESPORTS dropped from around 28 cents in mid-March to 7 cents by early June.

• DWF says the discount BitGo received was conditional on the tokens staying locked, and that tokens were moved to exchanges about two months before the first unlock.
• The firms say they raised the issue with BitGo in April and May and pursued court action after no undertaking was forthcoming.
• Neither DWF nor BitGo has publicly commented.