DeFi Technologies Gains UK Retail Approval Amid Legal Challenges
01.02.2026 - 03:08:05
DeFi Technologies has secured a significant operational milestone in the United Kingdom, even as it faces a substantial class action lawsuit. The company's subsidiary, Valour, has received regulatory clearance to distribute specific cryptocurrency exchange-traded products (ETPs) to retail investors in Britain. This development unfolds concurrently with legal proceedings alleging securities fraud related to the company's disclosures in late 2025.
A pivotal element of the current situation is a securities class action being organized by several law firms. Court documents cited in a Business Wire report from last Thursday indicate the suit encompasses investors who purchased DeFi Technologies securities between May 12, 2025, and November 14, 2025.
The core allegations focus on a purported failure to adequately disclose certain business risks and developments. The filing specifically mentions delays in implementing the "DeFi Alpha" arbitrage strategy, the competitive intensity from other digital-asset treasury firms, and the increasing likelihood that the company would miss its fiscal 2025 revenue forecast.
The catalyst for these legal claims was the financial update released in November 2025. For the third quarter of that year, DeFi Technologies reported a revenue decline of nearly 20%. Concurrently, it executed a sharp downward revision of its full-year 2025 revenue guidance, slashing the forecast from $218.6 million to approximately $116.6 million.
Valour Secures Key Regulatory Milestone
In a positive strategic move, Valour obtained approval from the UK Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) this past Monday. This authorization permits the sale of selected ETPs to UK-based retail investors, a channel previously restricted to professional investors on the LSE.
Should investors sell immediately? Or is it worth buying DeFi Technologies?
The initial products approved under this new regime are two physically-backed staking ETPs:
* 1Valour Bitcoin Physical Staking
* 1Valour Ethereum Physical Staking
These products are designed to provide regulated exposure to Bitcoin and Ethereum, respectively, with staking yields reflected directly in the net asset value (NAV).
Financial Snapshot and Strategic Context
As of last Friday, DeFi Technologies' stock was quoted at $0.7747, according to Yahoo Finance data, giving the company a market capitalization of roughly $320 million. This price sits far below its 52-week high of $4.95, a reflection of the challenges disclosed in Q3 2025.
The company's investor relations page, updated in mid-January, provides further financial detail:
* Cash: $119.5 million (as of September 30, 2025)
* Treasury Assets: $46.2 million (as of September 30, 2025)
* Basic Shares Outstanding: 385.8 million
Despite its legal and financial headwinds, DeFi Technologies continues to pursue international expansion. In December, the company formally entered the Brazilian market with a ceremony at the B3 exchange. The newly secured UK approval now extends Valour's ETP distribution network to include the British retail investment sector, even as the legal proceedings concerning the 2025 allegations continue to develop.
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