DeFi Technologies Faces Mounting Legal Challenges Amid Recovery

Shares of DeFi Technologies are currently trading back above the one-dollar threshold, but this rebound may be premature. The company is confronting the threat of significant class-action litigation, even as investors continue to digest a severe recent forecast reduction. A critical deadline on January 30, 2026, now poses a key test for the stock's ability to withstand mounting legal pressure.

The present turmoil stems from a substantial downward revision of business targets announced in November 2025. Company leadership was forced to slash its revenue forecast for the 2025 fiscal year from $218.6 million to approximately $116.6 million—a dramatic reduction of nearly 47%. Management attributed this shortfall to delays within its core "DeFi Alpha" arbitrage strategy.

This period of uncertainty has already triggered leadership changes. Johan Wattenström has assumed executive control, while former CEO Olivier Roussy Newton transitioned to an advisory position. The new management team emphasizes the value of operational units like Valour and Stillman Digital, but rebuilding market confidence remains an ongoing challenge.

Legal Proceedings Intensify

The legal landscape is now a dominant focus. On January 9, several law firms, including Levi & Korsinsky, issued reminders to investors regarding the impending January 30, 2026, deadline to file as lead plaintiff in the ongoing litigation.

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

The lawsuits center on allegations concerning the "DeFi Alpha" arbitrage strategy. Plaintiffs contend that between May and November 2025, the company failed to disclose delays in this key initiative and downplayed the competitive environment. These alleged omissions are said to have artificially inflated the share price before the underlying realities prompted a market correction.

Key Data at a Glance

• Current Share Price: ~$1.03 USD
• Intraday Movement: +2.4% to +5.4%
• Critical Deadline: January 30, 2026 (lead plaintiff filing cutoff)
• Financial Impact: Revenue target lowered by ~$102 million
• Market Capitalization: Approximately $397 million

Despite the gravity of the allegations, the equity has shown resilience in recent trading, moving away from recent lows around $0.91. This activity suggests some market participants view the prior sell-off as overdone, potentially reflecting confidence in the underlying value of the firm's existing Exchange Traded Products (ETPs).

Nevertheless, January 30 stands as a pivotal date for risk assessment. The future trajectory of the share price will largely depend on the evolution of the legal proceedings and the company's ability to meet its sharply reduced financial targets without further negative developments.