BitGo Sued by Affiliated Companies of DWF Labs for $141 Million in Damages CoinDesk reports that on October 9, two companies affiliated with market maker DWF Labs filed a lawsuit against cryptocurrency custodian BitGo, seeking $141 million in damages. The plaintiffs allege that BitGo breached its token lock-up agreement by releasing or selling custodied tokens before the agreed-upon lock-up period expired, thereby depressing the tokens’ market value and constituting a breach of contract. The lawsuit was filed around October 2, and as of October 9, BitGo had not publicly responded; the allegations have not yet been adjudicated by a court. The report also notes that BitGo is additionally embroiled in a dispute with Galaxy Digital over a terminated $1.2 billion acquisition deal, as well as a federal securities class action lawsuit filed in June 2026—making its legal exposure a material factor in evaluating the company.
DWF Labs Affiliate Sues BitGo for $141 Million Over Alleged Token Lockup Violation
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Summary
On October 9, 2026, two firms affiliated with DWF Labs sued BitGo for $141 million, alleging that the custodian breached a token lock-up agreement by selling tokens prematurely, which they claim harmed valuations. The lawsuit, filed around October 2, comes as BitGo faces legal pressure from Galaxy Digital and a securities class action, raising concerns about CFT compliance and liquidity in crypto markets. The company has not yet commented.
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