Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DeFi Technologies Inc. (NASDAQ: DEFT) and reminds investors of the January 30, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. The complaint alleges that the Company and its executives violated federal securities laws by making false and misleading statements and failing to disclose delays in executing DeFi Technologies’ arbitrage strategy, a key revenue driver for the Company.
DeFi Technologies had understated the extent of competition it faced from other DAT companies and the extent to which that competition would negatively impact its ability to execute its DeFi arbitrage strategy. As a result, the Company was unlikely to meet its previously issued revenue guidance for the fiscal year 2025. Accordingly, Defendants had downplayed the true scope and severity of the negative impact that the foregoing issues were having on DeFi Technologies’ business and financial results, and as a result, Defendants’ public statements were materially false and misleading at all relevant times.
On November 6, 2025, DeFi Technologies issued a press release purporting to report an arbitrage trade by DeFi Alpha. The press release disclosed that DeFi Alpha arbitrage opportunities had absorbed or delayed a significant share of arbitrage opportunities over the past year. On November 14, 2025, DeFi Technologies issued a press release reporting its financial results for the third quarter of 2025, including a revenue decline of nearly 20% and lowering its 2025 revenue forecast from $218.6 million to approximately $116.6 million, attributing the downgrade to delays in DeFi Alpha arbitrage opportunities amid the proliferation of DeFi companies and price-movement consolidation in the latter half of 2025. Concurrently, Defendant Newton would leave his role as CEO and transition to an advisory position.
Following these disclosures, DeFi Technologies’ stock price fell $0.40 per share, or 27.59%, over the following two trading sessions, to close at $1.05 per share on November 17, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as lead plaintiff or not.
Leave a Reply