BitGo faces $141M lawsuit from DWF Labs-linked firms over token lock-up

BitGo, the digital asset custodian whose entire job is holding things securely, is now accused of letting go too soon. Two companies linked to DWF Labs have filed a lawsuit seeking $141 million from the firm. The claim centers on a token lock-up agreement. The plaintiffs allege BitGo released tokens it had acquired before the agreed lock-up period ended. They say that move pushed down the tokens’ market value. What the lawsuit alleges The suit was filed around October 2, 2026. The plaintiffs are two entities connected to DWF Labs, a Dubai-based digital asset market maker and investor founded in 2022. Their argument is a breach-of-contract claim. According to the plaintiffs, BitGo agreed to hold certain tokens for a set period and then allegedly sold or released them early. The damages theory is straightforward. If a large block of tokens hits the market sooner than expected, prices can fall, and the plaintiffs claim that is what happened here. BitGo has not publicly addressed the lawsuit. As of October 9, 2026, the company had issued no statement on the claims. None of the allegations have been tested in court. A complaint is one side’s version of events, and BitGo will have the op...