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USD1 
WLFI 
FF BitGo faces $141 million lawsuit: Allegations of early selling of tokens associated with Trump-backed World Liberty Financial
The Financial Times reported on Friday that crypto-asset custodian BitGo is facing a lawsuit worth up to $141 million. The plaintiffs, two companies associated with DWG Labs, accused BitGo of violating the agreement and selling the relevant tokens in advance.
Core of the lawsuit: Violation of lock-in and vesting period agreements
The case was filed in the High Court in London. All parties involved in the case have one thing in common: they are all associated with the Trump-backed DeFi project World Liberty Financial.
According to allegations by DWG Maas and Falcon Digital, BitGo is suspected of violating the lock-up period and vesting period agreement on Falcon Finance (FF) and ESPORTS tokens purchased at a discount in off-the-counter private transactions. The plaintiff alleges that BitGo moved the tokens to the exchange (presumably for sale) approximately two months before the first agreed unlock date, violating a three-month lockdown and attribution restriction arrangement.
Companies associated with DWG Labs pointed out that BitGo sold tokens in less liquid markets, causing the value of the tokens it holds to fall. According to the claimant, the price of Falcon Finance fell from approximately US$0.08 in early March to US$0.07 at the end of April; while the price of ESPORTS plummeted from approximately US$0.28 in mid-March to US$0.07 in early June.
How did World Liberty become a link connecting all parties?
The DeFi project, backed by President Donald Trump, is a key clue linking all the companies in this lawsuit.
- Investment by DWG Labs: In April 2025, DWG Labs conducted what it described as a "strategic private transaction" to purchase $25 million worth of WLFI tokens as part of its plan to provide liquidity for USD1.
- World Liberty's support for Falcon Finance: In July 2025, World Liberty invested US$10 million in Falcon Finance to promote the exchange between USDf and USD1. Among them, USDf stablecoins are issued by the company and run on the infrastructure of DWG Labs. DWG Labs and Falcon Finance have a co-founder: Andrei Grachev.
- BitGo's role: BitGo became the custodian of World Liberty's USD1 stablecoin reserves and was also responsible for the minting and destruction of the stablecoin. Currently, the total amount of USD1 circulating on the Ethereum, BNB Chain, Solana and Tron networks totals nearly US$4.3 billion.
World Liberty is gradually taking back management of USD1
The partnership between BitGo and World Liberty may be nearing its end. On August 14, 2026, the U.S. Office of the Comptroller of the Currency (OCC) granted World Liberty Trust Company preliminary conditional approval from its National Trust Bank.
The new bank plans to issue and redeem USD1 on its own,"replacing BitGo Bank & Trust, the National Association's current exclusive issuer and custodian role." However, final approval still depends on pre-opening conditions and may be revoked at any time.
