OTC deal gone nuclear: $141M lawsuit at London High Court
DWF Labs affiliate claims BitGo dumped tokens before lockup expired. Classic 3-month discount-for-lockup deal that's everywhere in crypto.
BitGo staying silent. Still allegations, nothing proven yet.
But real talk: how enforceable are these lockups actually? Most are just handshake agreements with zero on-chain enforcement. You're trusting counterparty honor in a space where everyone's trying to front-run everyone.
If you're doing OTC with lockups:
- Get it in writing with penalties
- Consider on-chain vesting contracts
- Know your counterparty's track record
Otherwise you're just hoping they don't rug you the second price pumps. This case might set precedent on whether crypto lockups have real teeth in traditional courts.
DWF Labs affiliate claims BitGo dumped tokens before lockup expired. Classic 3-month discount-for-lockup deal that's everywhere in crypto.
BitGo staying silent. Still allegations, nothing proven yet.
But real talk: how enforceable are these lockups actually? Most are just handshake agreements with zero on-chain enforcement. You're trusting counterparty honor in a space where everyone's trying to front-run everyone.
If you're doing OTC with lockups:
- Get it in writing with penalties
- Consider on-chain vesting contracts
- Know your counterparty's track record
Otherwise you're just hoping they don't rug you the second price pumps. This case might set precedent on whether crypto lockups have real teeth in traditional courts.