Legal Challenges Mount for DeFi Technologies Amid Strategic Expansion

DeFi Technologies CA24464X1069

A series of class-action lawsuits has cast a shadow over DeFi Technologies, a crypto-focused financial services provider, even as the company pushes forward with international growth plans. The legal actions, confirmed by multiple U.S. law firms, allege the company made misleading business statements, a situation exacerbated by a significant downward revision to its revenue forecast.

The catalyst for the current legal predicament emerged in mid-November 2025 with the release of third-quarter financial results. In that announcement, DeFi Technologies slashed its full-year 2025 revenue guidance dramatically. The company reduced its projection from an original $218.6 million to approximately $116.6 million, representing a 47% cut.

The market's reaction was swift and severe. Upon the correction's disclosure, the company's shares plummeted more than 27% in a single trading session, hitting $1.05. The stock currently trades around $1.22, a level far below its 52-week high of $4.95.

Key Data Points:
* Current Share Price: Approximately $1.22
* Market Capitalization: Roughly $459 million
* Revised 2025 Revenue Forecast: Lowered to ~$116.6M from ~$218.6M
* Lead Plaintiff Deadline: January 30, 2026

Law Firms Allege Securities Violations

On December 8, 2025, firms including The Schall Law Firm and DJS Law Group confirmed they had filed class-action complaints against the company. The suits center on potential violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The claims focus on the period between May 12 and November 14, 2025. Plaintiffs allege that company management obscured delays in its arbitrage strategy and deliberately downplayed competitive pressures within the digital asset treasury sector. Investors have until January 30, 2026, to apply for lead plaintiff status in the litigation.

South American Expansion Proceeds Amid Turmoil

Despite the legal overhang, the company's subsidiary, Valour Inc., continues its strategic expansion. Beginning December 17, 2025, Valour plans to list four physically backed Exchange Traded Products (ETPs) on Brazil's B3 exchange.

This move will provide Brazilian investors with access to ETPs tracking Bitcoin, Ethereum, XRP, and SUI. Management appears to be banking on geographic diversification to open new revenue streams. However, the operational progress is currently overshadowed by the loss of investor confidence following the guidance cut and the ensuing wave of lawsuits.

Critical Period Ahead for Shareholders

The company's market valuation of nearly $459 million suggests investors still see potential in its crypto-ETP business model. Nevertheless, the substantial gap between initial and revised revenue expectations has clearly damaged credibility.

The coming weeks will reveal whether the Brazilian launch can generate positive momentum. Furthermore, the January 30, 2026, deadline for lead plaintiff filings presents another pivotal moment, one likely to significantly influence the investment risk associated with DeFi Technologies' equity.