DWF Maas and Falcon Digital, two subsidiaries of market maker DWF Labs, have filed a $141 million lawsuit against crypto custodian BitGo at the High Court of London. The claim alleges that BitGo sold tokens from the FF (Falcon Finance) and ESPORTS projects before agreed lock-up periods had expired, causing substantial losses when the tokens' market prices subsequently fell.

DWF Maas is headquartered in the British Virgin Islands, while Falcon Digital is based in Panama. The two entities are seeking $114 million in damages tied directly to the alleged premature sales, as part of the broader $141 million claim filed with the London court.

According to the filing, BitGo had agreed to a three-month lock-up period on the tokens. Instead, the FF and ESPORTS tokens reportedly reached exchanges approximately two months before the first scheduled unlock. DWF Labs says it raised the issue with BitGo directly in April and May before proceeding to litigation.

Price declines cited as basis for damages

The lawsuit points to sharp price movements in both tokens over the period in question. FF was trading at around 8 cents at the start of March, when the lock-up period began, and had fallen to roughly 7 cents by the end of April. ESPORTS saw a steeper decline, dropping from about 28 cents in mid-March to 7 cents by early June.

DWF Labs argues that the early release of tokens onto exchanges, ahead of the agreed unlock schedule, contributed materially to these declines by increasing circulating supply before the market was prepared for it.

DWF Labs' broader profile

DWF Labs has been an active participant in token markets beyond this dispute. The firm invested $25 million in 2025 in WLFI, the native token of World Liberty Financial, a crypto initiative backed by President Donald Trump and his family.

DWF Labs was founded by Andrei Grachev, who led the Russian division of exchange Huobi from 2018 to 2019. Huobi has since been sanctioned in various jurisdictions over allegations it helped Russia evade Western sanctions.

Requests for comment sent to DWF Labs and BitGo received no immediate response. The case now proceeds through London's High Court, a jurisdiction increasingly used for cross-border disputes involving digital asset custody arrangements.