Two crypto firms linked to Trump-backed World Liberty Financial are embroiled in a $141 million legal battle. DWF Maas and Falcon Digital, sister companies under DWF Labs, have sued Bit Go, alleging it breached contracts by selling digital tokens before agreed lock-ups expired. The lawsuit, filed in London's High Court, claims Bit Go sold Falcon Finance and ESPORTS tokens prematurely, causing prices to fall.
Private "over-the-counter" token sale agreements are common in crypto as a way for founders to raise funds without immediately depressing market prices. In return, traders receive discounted tokens that can be sold once lock-up periods expire. However, these deals rely on trust and opacity, making them controversial, especially for retail investors exposed to dumping after vesting periods.
DWF claims Bit Go sold tokens roughly two months before the first unlock, flooding an already illiquid market. Falcon Finance tokens dropped from $0.08 in early March to $0.07 by late April. ESPORTS tokens fell from about $0.28 in mid-March to $0.07 by early June.
DWF is seeking $141 million in damages, arguing Bit Go's actions resulted in direct losses. Bit Go declined to comment on the litigation. DWF remains open to resolution.
World Liberty Financial, backed by Donald Trump and his sons, is also entangled in the dispute, with DWF purchasing $25 million worth of its tokens last year.
Source: Financial Times Markets · Summarized by HeadlinesBriefing