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As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) DeFi Technologies was facing delays in executing its DeFi arbitrage strategy, which at all relevant times was a key revenue driver for the Company; (ii) 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; (iii) as a result of the foregoing issues, the Company was unlikely to meet its previously issued revenue guidance for the fiscal year 2025; (iv) 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 (v) 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, inter alia, that “[DAT]s have absorbed or delayed a significant share of arbitrage opportunities over the past year.”
On this news, DeFi Technologies’ stock price fell $0.13 per share, or 7.43%, to close at $1.62 per share on November 6, 2025.
Then, on November 14, 2025, DeFi Technologies issued a press release reporting its financial results for the third quarter of 2025. Among other items, DeFi Technologies reported a revenue decline of nearly 20%, falling well short of market expectations. The Company also significantly lowered its 2025 revenue forecast, from $218.6 million to approximately $116.6 million, and attributed this reduction 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.”
Concurrently, DeFi Technologies announced that 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 a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding DeFi Technologies’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the DeFi Technologies class action, go to http://www.faruqilaw.com/DEFT or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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