Legal Challenges Mount for DeFi Technologies Amid Expansion Drive

DeFi Technologies Inc. finds itself navigating a complex landscape of legal pressure and international growth. The company is confronting a series of class-action lawsuits in the United States centered on allegations of securities fraud, even as it pushes forward with a significant expansion into the Brazilian financial market.

Core Allegations in U.S. Securities Fraud Case

Multiple law firms have filed a consolidated class-action suit in the U.S. District Court for the Eastern District of New York. The case, Linkedto Partners LLC v. DeFi Technologies Inc., et al. (Case No. 25-cv-06637), is open to shareholders who purchased the company’s stock between May 12, 2025, and November 14, 2025.

The plaintiffs allege that the company and certain executives made materially false and misleading statements and failed to disclose critical adverse information. The lawsuit focuses on several key assertions:

• Strategic Delays: The implementation of the DeFi Alpha arbitrage strategy, a purported major revenue driver, faced significant and undisclosed delays.
• Misrepresented Competition: The competitive threat from other digital-asset treasury providers was allegedly downplayed to the market.
• Unattainable Forecasts: The company’s previously issued revenue guidance for the 2025 fiscal year was, according to the suit, unachievable.
• Misleading Communications: Public statements are accused of concealing the true negative impact of these issues on the company’s business and financial results.

Third-Quarter Results Trigger Sharp Decline

The legal actions were precipitated by the financial results DeFi Technologies released on November 13, 2025. The third-quarter report revealed a nearly 20% drop in revenue, missing market expectations.

More impactful was the drastic revision to the full-year outlook. Management slashed its 2025 revenue guidance from $218.6 million to approximately $116.6 million—a reduction of roughly 47%. Company leadership cited delays in capitalizing on DeFi Alpha arbitrage opportunities and increased competition in the digital-asset treasury sector as the primary reasons.

Market Reaction and Share Price Impact

The market response was severe. Over two trading sessions, the equity lost $0.40 per share, equating to a decline of 27.59%. By the close on November 17, 2025, shares were trading at $1.05. This stark discrepancy between prior expectations and the revised forecast forms a central pillar of the legal allegations.

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

Brazilian Market Entry Proceeds Despite Headwinds

Concurrently with its U.S. legal troubles, DeFi Technologies continues to execute its international strategy. The company recently celebrated the listing of its Brazilian Depositary Receipts (BDRs) on the B3 exchange in São Paulo.

Trading under the ticker DEFT31 commenced on December 17, 2025, providing Brazilian institutional investors with local access to the stock. Furthermore, the company’s subsidiary, Valour, has listed four digital asset exchange-traded products (ETPs) on the B3:
* Valour Bitcoin (BTCV)
* Valour Ethereum (ETHV)
* Valour XRP (XRPV)
* Valour SUI (VSUI)

This move represents a concerted effort to build market presence in Brazil while legal proceedings develop in the United States.

Deadlines and Broader Implications

Investors who suffered losses during the specified class period and wish to participate in the lawsuit must act by key deadlines. The cutoff to file a motion to be appointed as a lead plaintiff is January 30, 2026.

This situation underscores the intense regulatory and judicial scrutiny facing digital asset firms concerning their financial disclosures and forward-looking statements. The outcome of this case is likely to have meaningful consequences for DeFi Technologies and may set precedents for the broader digital asset ETP marketplace.