DWF firms sue BitGo for $141M as World Liberty partners fight in London court
- DWF Maas and Falcon Digital, both linked to DWF Labs, sued BitGo for $141 million in London.
- They allege the custodian sold locked Falcon Finance and ESPORTS tokens before agreed release dates.
- Every party is tied to World Liberty Financial, which is itself moving to strip BitGo of its role as USD1 issuer through a newly approved trust bank.
BitGo is facing a $141 million lawsuit over tokens that two firms tied to DWF Labs claim it sold earlier than agreed, per the Financial Times on Friday.
The parties in the case filed in London’s High Court have one thing in common: ties to the Trump-backed World Liberty Financial DeFi project.
Why BitGo is being sued
The $141 million London lawsuit BitGo faces is based on DWF Maas and Falcon Digital claims that BitGo might have breached lock-up and vesting period agreements for the Falcon Finance (FF) and ESPORTS tokens they bought at a discount in a private over-the-counter deal.
The plaintiffs allege that BitGo went back on their three-month lock-up and vesting limits arrangement when it moved those tokens to exchanges, presumably to sell them, roughly two months before the first agreed unlock date.
The DWF Labs-linked firms claim that BitGo’s token sales into a low-liquidity market dragged down the value of the tokens they held.
Per the claimants, Falcon Finance was trading at about $0.08 in early March and $0.07 in late April. ESPORTS, on the other hand, went from trading around $0.28 in mid-March to $0.07 in early June.
How is World Liberty connected to DWF Labs and BitGo?
The DeFi project backed by President Donald Trump is the thread connecting all the firms in this litigation.
DWF Labs made what it described as a “strategic private transaction” when it bought $25 million of WLFI tokens in April 2025 as part of its plan to supply liquidity for USD1.
World Liberty invested $10 million into Falcon Finance in July 2025 to work on conversions between USDf and USD1. The USDf stablecoin issued by the firm runs on DWF Labs infrastructure. DWF Labs and Falcon Finance share a founder: Andrei Grachev.
BitGo became the custodian for the reserves behind World Liberty’s USD1 stablecoin. It is also responsible for minting and burning the stablecoins, too. Nearly $4.3 billion of USD1 is in circulation across Ethereum, BNB Chain, Solana and Tron.
World Liberty is pulling USD1 away from BitGo
The BitGo-World Liberty connection may already have an expiry date. The Office of the Comptroller of the Currency granted World Liberty Trust Company preliminary conditional approval for its national trust bank on August 14, 2026.
The charter document states the new bank plans to issue and redeem USD1 itself, “assuming this role from BitGo Bank & Trust, National Association, the current exclusive issuer and custodian for USD1.”
Final approval still hinges on pre-opening conditions and can be revoked.
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FAQs
Who is suing BitGo and for how much?
DWF Maas and Falcon Digital, two firms linked to crypto market maker DWF Labs, filed in London's High Court seeking $141 million in damages.
What does the lawsuit accuse BitGo of doing?
The plaintiffs allege BitGo sold Falcon Finance and ESPORTS tokens before contractual lock-ups and vesting restrictions expired, driving down prices and reducing the value of the tokens they still held.
How is World Liberty Financial connected to the case?
DWF Labs bought $25 million of World Liberty's WLFI token, Falcon took a $10 million investment from the project, and BitGo custodies the reserves behind its USD1 stablecoin, a role World Liberty now plans to take over through its own trust bank.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
