On November 6, 2025, DeFi issued a press release reporting an arbitrage trade by its “specialized arbitrage trading desk” business segment, DeFi Alpha, stating its digital asset treasuries (“DATs”) “have absorbed or delayed a significant share of arbitrage opportunities over the past year.” On this news, DeFi’s stock price fell $0.13, or 7.4%, to close at $1.62 per share on November 6, 2025, thereby injuring investors.
Then, on November 14, 2025, DeFi released its third quarter 2025 financial results, reporting a revenue decline of nearly 20% and significantly lowering its 2025 revenue forecast due to “a delay in executing DeFi Alpha arbitrage opportunities previously forecasted due to the proliferation of DAT companies and the consolidation in digital asset price movement in the latter half of 2025.” Additionally, the Company also disclosed that its CEO would be leaving his role and assuming an advisory position instead. The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.
Specifically, Defendants failed to disclose to investors that: (1) DeFi was facing delays in executing its DeFi arbitrage strategy, which at all relevant times was a key revenue driver for the Company; (2) DeFi 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; (3) as a result of the foregoing issues, the Company was unlikely to meet its previously issued revenue guidance for the fiscal year 2025; (4) 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 (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. The deadline to seek appointment as the lead plaintiff in the securities fraud class action is January 30, 2026 for those who acquired DeFi securities between May 12, 2025 and November 14, 2025. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
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