BitGo controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2026
DWF Labs subsidiaries file $114 million lawsuit against BitGo over alleged token lock-up breach
Lawsuit filed
DWF Labs subsidiaries DWF Maas (British Virgin Islands) and Falcon Digital (Panama) filed a $114 million lawsuit against cryptocurrency custodian BitGo in London's High Court, alleging that BitGo breached contractual lock-up restrictions by transferring and selling discounted Falcon Finance (FF) and ESPORTS tokens to exchanges about two months before their scheduled release, contributing to sharp declines in the tokens' market values. DWF Labs is seeking $114 million in compensation, arguing BitGo's alleged unauthorized token sales directly contributed to financial losses. The allegations remain unproven, and the court has yet to determine whether BitGo violated its contractual obligations; neither DWF Labs nor BitGo immediately responded to CoinDesk's requests for comment.
Stated objective. Seeking $114 million in compensation, arguing that BitGo's alleged unauthorized token sales directly contributed to financial losses
Source excerpt
The lawsuit, filed in London's High Court, alleges that BitGo breached contractual restrictions involving discounted sales of Falcon Finance (FF) and ESPORTS tokens.
DWF Labs subsidiaries DWF Maas and Falcon Digital have filed a $114 million lawsuit against cryptocurrency custodian BitGo, accusing the company of violating token lock-up agreements and triggering significant price declines, according to a Financial Times report on Friday.
2022
Dispute over Galaxy Digital acquisition termination
Galaxy Digital terminated its proposed acquisition of BitGo, alleging that BitGo had not supplied financial information needed for Galaxy's SEC filing. BitGo denied the allegation and pursued a claim for the contractual termination fee. Delaware court proceedings continued after conflicting trial and appellate outcomes.
2020
U.S. Treasury sanctions settlement
BitGo agreed to pay $98,830 to settle potential civil liability relating to 183 apparent sanctions violations involving transactions connected with Ukraine, Cuba, Iran, Sudan, and Syria between 2015 and 2019.
2020
BitGo settles U.S. Treasury sanctions case
Settlement
The U.S. Treasury reached a settlement with BitGo over charges that its crypto wallet services facilitated transactions by users in sanctioned areas between 2015 and 2019. Under the settlement, BitGo will pay $98,830. The Treasury described 183 transactions as apparent violations. According to the source article, BitGo had not responded to a request for comment as of publication.
The U.S. Treasury settled with BitGo over charges that it facilitated transactions through its crypto wallet services by users in sanctioned areas between 2015 and 2019. The settlement will cost BitGo $98,830. Treasury described 183 transactions as apparent violations; the article says BitGo had not responded to a request for comment as of publication.
Source excerpt
The Treasury wrote that there were 183 "apparent violations" of its various sanctions programs, adding up to just over $9,000 in transactions.
The U.S. Treasury has settled with BitGo over charges that it facilitated users in sanctioned areas to transact using its crypto wallet services between 2015 and 2019.