DeFi Technologies Faces Securities Lawsuit Over Competition Saturation

Shareholders filed a federal securities class action alleging DeFi Technologies misled investors about its arbitrage-driven business as competition reduced exploitable opportunities; the complaint follows November disclosures that cut full-year revenue guidance and motions for lead-plaintiff appointment are due January 30, 2026.

Shareholders filed a federal securities class action against DeFi Technologies Inc. and three executives, alleging management misrepresented the company's arbitrage strategy while competition eroded trading margins. DeFi Technologies runs digital asset treasury activities and had promoted a proprietary arbitrage approach called DeFi Alpha as a core revenue driver. Management issued optimistic results and guidance in May and August 2025. In November 2025 the company acknowledged absorbed arbitrage opportunities and sharply reduced its full‑year revenue forecast. Key facts: - A complaint was filed on December 1, 2025 in the U.S. District Court for the Eastern District of New York (Case No. 1:25-cv-06637). - Plaintiffs allege statements made between May 12 and November 14, 2025 omitted material competitive pressures that hindered DeFi Alpha's execution and revenue prospects. - On November 6, 2025 the company said digital asset treasury firms had absorbed or delayed a significant share of arbitrage opportunities; on November 14 it cut full‑year revenue guidance by about 46%. - Named defendants include DeFi Technologies Inc., CEO Olivier Roussy Newton, CFO Paul Bozoki, and Valour CIO Stefan Hanssen. - The next scheduled procedural step is motions to be appointed lead plaintiff, due January 30, 2026, after which the court may consider class certification and any motions to dismiss. Summary: The complaint contends that public statements understated competitive deterioration while the arbitrage-driven business weakened, and November disclosures reflected a marked revenue revision. The case is at the initial federal court stage; appointment of a lead plaintiff by January 30, 2026 is the next listed procedural milestone.