DeFi Technologies Faces Investor Lawsuits Following Guidance Cut and Leadership Change

DeFi Technologies CA24464X1069

DeFi Technologies, a company specializing in digital assets, is confronting significant legal challenges. A series of class-action lawsuits have been filed against the firm, alleging it misled shareholders. This legal pressure intensifies an already difficult period marked by disappointing quarterly results and an unexpected change in executive leadership.

Multiple law firms have initiated class-action suits in recent days. The core allegation is that DeFi Technologies issued false or misleading statements between May 12 and November 14, 2025. The specific claims detailed in the filings include:
* A failure to disclose significant delays in implementing its decentralized finance (DeFi) arbitrage trading strategy.
* Minimizing the substantial competitive threat posed by other treasury management companies operating in the digital asset sector.
* Publishing unrealistic revenue projections for fiscal 2025 that were unlikely to be achieved from the outset.
* Concealing the negative business and financial impacts resulting from these issues.

Investors seeking to join the consolidated class action must do so by January 30, 2026.

Revised Forecast and CEO Departure Trigger Sell-Off

The catalyst for the legal and market turmoil was the company's third-quarter earnings release on November 14. While DeFi Technologies reported revenue of $22.5 million and operating income of $9 million, a subsequent guidance revision shocked the market. Management sharply reduced the full-year 2025 revenue forecast to $116.6 million, citing delays in arbitrage trading and compressed trading margins.

The market reaction was severe: the stock price plummeted 27.6% over just two trading sessions. Uncertainty was compounded on November 17 by the sudden resignation of CEO Olivier Roussy Newton. Co-founder Johan Wattenström was named as his successor, but the abrupt leadership transition in the midst of a crisis further rattled investor confidence.

Analyst Downgrade and Operational Developments

In response to the new guidance, analysts at Benchmark took action on November 21. They drastically slashed their price target from $8.00 to $3.00, though they maintained a "Buy" rating on the shares.

Despite the turbulence, the company continues its operational expansion. On December 4, its subsidiary Valour announced the listing of four new exchange-traded products on Brazil's B3 stock exchange. Furthermore, DeFi Technologies strengthened its balance sheet earlier in the year through an equity financing round that raised over $100 million.

From a technical perspective, the equity remains under pressure. The shares are trading well below their 50- and 200-day moving averages and have declined approximately 56% in value since the start of the year.