Public companies with crypto holdings should take note. Investors have filed a securities class action lawsuit against DeFi Technologies, alleging that the company misled investors regarding its digital asset trading business. This lawsuit could be the start of a wave of similar litigation against other companies with crypto assets.
The DeFi Lawsuit
On December 1, a securities class action lawsuit was filed against DeFi Technologies in the Eastern District of New York. According to Rosen Law Firm, the lawsuit claims that the defendants made false and/or misleading statements and/or failed to disclose information related to its arbitrage strategy and competition faced from other digital asset treasury (DAT) companies. On November 14, 2025, DeFi released its third quarter financial results, showing a revenue decline of close to 20% and lowering its 2025 revenue forecast, according to Glancy Prongay & Murray.
The class period spans from May 12, 2025, to November 14, 2025. During this time, DeFi’s share price fell from a high of $4.95 on May 12 to a low of $1.00 on November 14 according to Yahoo Finance.
While this is one lawsuit against one company, it could be part of a larger trend, and other public companies with digital assets should be paying attention.
Will the DAT Trend Lead to a Litigation Trend?
Since MicroStrategy purchased $250 million in Bitcoin in 2020, more than 200 U.S. companies have announced a pivot to a digital asset treasury strategy, according to PYMNTS. As of late 2025, public DATs hold more than $100 billion in digital assets.
Now it appears that the DAT trend may lead to a litigation trend.
Bitcoin price history charts resemble rollercoasters. Since reaching new highs in late 2024 and early 2025, Bitcoin prices tumbled. Prices rallied over the summer, then fell again in November. Yahoo Finance says Bitcoin prices were down by about 17% in November.
For companies with digital holdings, the tumultuous crypto market poses problems. Their values are tied to the market, and according to CNBC, there’s growing concern that some companies may have to sell some of their digital assets to make up for falling values.
Falling values also trigger scrutiny and shareholder litigation. The lawsuit against DeFi could be a harbinger of what’s to come.
A Blueprint for Shareholder Lawsuits
The DeFi lawsuit could become a blueprint for shareholders of other companies. Crypto holdings are still a relatively new corporate strategy, and investors will be watching to see what the courts rule concerning forecasting, communication and governance. If this lawsuit is successful, there’s a good chance many more investors will follow suit. We could be looking at a new wave of litigation.
Corporate leaders will want to watch this closely.
If your company holds crypto on its balance sheet, disclosure is critical. A drop in value could prompt shareholders to look for instances where you overstated your performance or understated your risk. A failure to disclose your strategy could be seen as misrepresentation, so transparency and communication are necessary. The risks can be even greater for companies that undergo a change in control or adopt digital assets as their primary strategy.
If a tidal wave of litigation is coming, now is the time to move to higher ground, and you can do that by tightening your governance and following best practices for shareholder communication. Document your strategy, make your disclosures, and get your entire management team on board to ensure consistent communication.
There’s one more thing you can do – check your D&O coverage. Contact NSI Insurance Group for a complimentary review of your D&O coverage.
