An investment firm has filed a class-action lawsuit alleging that a digital asset company and its senior executives misled investors about the company’s financial condition and business prospects. The complaint asserts that inaccurate and incomplete disclosures caused investors to purchase shares at artificially inflated prices.
The plaintiff, Linkedto Partners LLC, alleges that DeFi Technologies Inc. and certain executives made materially false or misleading statements regarding the company’s operations and expected revenue growth. According to the complaint, the company failed to disclose delays affecting its decentralized finance arbitrage strategy, which was described as a key driver of revenue, and understated competitive pressures from other digital asset treasury firms.
The lawsuit claims that during the relevant period, DeFi Technologies promoted the strength of its trading operations, including its DeFi Alpha desk, and projected substantial revenue growth. Linkedto Partners alleges that these statements concealed operational challenges that limited the company’s ability to execute arbitrage opportunities and meet financial projections.
According to the complaint, the company later disclosed that delays in executing arbitrage transactions had reduced or postponed potential profits. Subsequent disclosures reported lower-than-expected quarterly revenue and reduced annual revenue projections, attributing the decline in part to increased competition. The plaintiff alleges that these announcements revealed previously undisclosed risks and led to a decline in the company’s stock price.
Linkedto Partners claims that investors suffered losses as a result of purchasing shares at prices inflated by the alleged misstatements and omissions. The lawsuit seeks damages under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.
The plaintiff is represented by attorney Jeremy A. Lieberman of Pomerantz LLP. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-06637.