DeFi Technologies Faces Investor Lawsuits and Revenue Downgrade

DeFi Technologies, a provider of cryptocurrency-related services, is confronting significant legal challenges as multiple law firms assemble investors for a class action lawsuit. The case alleges securities law violations and corporate misrepresentation, creating a crisis of confidence that is compounded by a severe reduction in the company's revenue forecast.

The core of the legal complaint focuses on a specific period from May to November 2025. Investors allege that DeFi Technologies issued materially misleading statements during this time and failed to disclose operational weaknesses. The deadline for lead plaintiff motions is set for January 30, 2026, a date now heavily circled by market participants assessing the stock's risk.

Specific allegations detailed in the suit include:
* A failure to communicate significant delays in the company's revenue-critical "DeFi Alpha" arbitrage strategy.
* Misrepresenting the intensifying competitive landscape within the Digital Asset Treasury sector.
* Not informing investors that the company's internal revenue targets had become unachievable.

Financial Performance and Market Reaction

These legal accusations are directly tied to disappointing financial developments in late 2025. In November of that year, the company's management slashed its full-year 2025 revenue guidance. The forecast was dramatically cut from an original $218.6 million to approximately $116.6 million—a reduction of nearly half.

Should investors sell immediately? Or is it worth buying DeFi Technologies?

The market's response was immediate and severe. Over the two trading sessions following this announcement, DeFi Technologies' share price plummeted by more than 27%. Plaintiffs contend this dramatic loss in value was the direct result of the previously undisclosed internal issues now cited in the lawsuit.

Core Business Operations Continue Amid Turmoil

Despite the growing legal storm, the company's operational subsidiaries continue their activities. Valour, its subsidiary specializing in exchange-traded products (ETPs) for digital assets, reported an estimated $138.2 million in net inflows for 2025. Management continues to highlight growth in this regulated segment, but these developments are currently overshadowed by the dominant narrative of legal liability.

The equity remains under significant technical pressure, trading well below its 200-day moving average. All eyes are now fixed on the evolving legal process, with the January 30, 2026 deadline expected to reveal the full scale of the investor action against DeFi Technologies.