Affiliates of digital asset market maker DWF Labs have filed a $141 million lawsuit against BitGo, the cryptocurrency custody and financial services firm, over early token sales tied to Falcon Finance (FF), according to reporting published on October 9, 2026.

Update 02:48 UTC: The dispute surfaced through fresh reporting in the Financial Times, which confirmed the two sides' accounts of the deal timeline. According to those accounts, BitGo received the FF and ESPORTS tokens at a discount when the three-month lock-up period began in early March, and the transfers of the tokens to exchanges came at roughly the same point in the arrangement.

BitGo operates as a provider of digital asset custody and related financial services, while DWF Labs is a market-making and investment firm active in the cryptocurrency sector. Falcon Finance is the protocol associated with the FF token, and the ESPORTS token was also referenced in the reported agreement between the parties. Lock-up periods are a standard feature of token sale agreements, setting a window during which early recipients are restricted from selling their allocations, and the suit's focus on early sales makes that timing the crux of the dispute.

The Financial Times reporting served to corroborate the sequencing of events as described by both sides in the dispute: the discounted token transfer to BitGo at the start of the lock-up in early March, followed by the movement of tokens onto exchanges. With a nine-figure claim now attached to that timeline, the case illustrates how disagreements over when early token allocations may be sold can escalate into litigation between established firms in the sector. Further court filings and any public statements from the two companies may add detail on the terms of the agreement and the transfers at issue.

This content was first published on COINOTAG.