DWF is pursuing $114 million in damages from BitGo, alleging that the custodian breached token lock-up agreements and triggered financial losses by selling assets before the restrictions expired.

DWF Maas and Falcon Digital, two investment subsidiaries of crypto market maker DWF Labs, have brought the case against cryptocurrency custodian BitGo BTGO $7.1400 in London’s High Court, the Financial Times reported Friday.

The lawsuit centers on discounted sales of Falcon Finance tokens FF $0.1069 and ESPORTS tokens. DWF’s subsidiaries claim the deals required BitGo to keep the tokens locked for three months but allege the custodian sold them ahead of schedule.

Private token sales are a common way for cryptocurrency projects to raise capital. Lock-up periods are designed to prevent buyers from quickly selling discounted tokens and creating immediate downward pressure on prices.

DWF Maas, registered in the British Virgin Islands, and Panama-based Falcon Digital say BitGo violated the contractual terms by selling the tokens before the lock-up periods ended. They argue that the sales contributed to sharp price declines.

FF traded at about $0.08 when its lock-up began in early March, before slipping to roughly $0.07 by late April. ESPORTS dropped from approximately $0.28 in mid-March to around $0.07 in early June. DWF claims the falling prices caused direct losses and is seeking $114 million in compensation.

According to the Financial Times, DWF said BitGo’s discounted purchase price was conditional on the tokens remaining locked. The firm alleged that the assets were moved to exchanges around two months before the first scheduled unlock.

DWF said it raised the matter with BitGo in April and May. After failing to obtain an assurance from the custodian, the firm said it decided to pursue legal action.

DWF also purchased $25 million worth of WLFI tokens last year. The token belongs to World Liberty Financial, a cryptocurrency venture backed by U.S. President Donald Trump and his family.

The investment drew scrutiny from some U.S. lawmakers over alleged links between DWF founder Andrei Grachev and Russia. Grachev was CEO of Huobi’s Russian division between 2018 and 2019. The cryptocurrency exchange has faced sanctions in several jurisdictions over allegations that it helped Russia evade Western sanctions.

DWF and BitGo had not immediately responded to CoinDesk’s requests for comment.