DeFi Technologies Inc. (DEFT) Securities Class Action Lawsuit Filed [December 5, 2025]

Introduction to DeFi Technologies Inc. (DEFT) Securities Class Action Lawsuit

A federal securities fraud class action has been filed against DeFi Technologies Inc. (NASDAQ: DEFT) in the U.S. District Court, Eastern District of New York. The case covers investors who bought DeFi Technologies securities from May 12, 2025 through November 14, 2025, both dates inclusive. Investors allege the company misrepresented the strength and execution of its DeFi Alpha arbitrage strategy, understated competition from other digital asset treasury (DAT) companies, and issued inflated 2025 revenue guidance. The truth surfaced in November 2025 when the company disclosed that DAT competitors had absorbed or delayed arbitrage opportunities and then slashed its 2025 revenue forecast from $218.6 million to approximately $116.6 million amid a nearly 20% revenue decline. Following these disclosures, DeFi Technologies' stock fell sharply, inflicting significant losses on shareholders.

DeFi Technologies Inc. (DEFT) Securities Lawsuit Case Details

Case Name: Linkedto Partners LLC v. DeFi Technologies Inc., et al.
Case No.: 1:25-cv-06637
Jurisdiction: U.S. District Court, Eastern District of New York
Filed on: December 1, 2025

DeFi Technologies Inc. (DEFT) Company Profile

DeFi Technologies is a technology and digital asset treasury (DAT) company that develops exchange traded products in Canada designed to synthetically track single DeFi protocols or baskets of protocols, and offers asset management services providing indirect exposure to digital assets and indexes. As part of its DAT operations, the company accumulates cryptocurrency assets.

DeFi Technologies Inc. (DEFT) Securities Lawsuit Class Period

May 12, 2025 – November 14, 2025, inclusive.

All persons and entities other than Defendants that purchased or otherwise acquired DeFi Technologies securities during the Class Period may be eligible to join the DeFi Technologies Inc. (DEFT) class action lawsuit.

Allegations in the DeFi Technologies Inc. (DEFT) Securities Class Action Lawsuit

The complaint targets DeFi Technologies Inc. and three executives-CEO Olivier Roussy Newton, CFO Paul Bozoki, and Valour CIO Stefan Hanssen-over statements about the company's business, operations, and prospects during 2025. According to investors, defendants repeatedly promoted DeFi Alpha, the company's proprietary arbitrage strategy, and issued optimistic revenue guidance while downplaying mounting competitive pressures in the DAT space. 

The story began on May 12, 2025, when CEO Olivier Roussy Newton marked the company's Nasdaq listing as a "historic moment," framing DeFi Technologies as the first of its kind to give equity investors direct exposure to decentralized finance and institutional-grade trading infrastructure. Two days later, on May 14, 2025, the company's Q1 2025 press release claimed DeFi Alpha had an "unblemished track record," cited C$132.1 million in 2024 gains with "zero losses to date," and highlighted a C$30.3 million trade executed on May 5, 2025 that would flow into Q2 results. That same day, Newton projected full-year 2025 revenue of approximately C$285.6 million (US$201.07 million), signaling an "accelerating growth trajectory." 

The narrative continued on August 14, 2025, when Newton told investors that "Q2 2025 was proof that our model executes in a softer market," praised DeFi Alpha's "low-risk opportunities," and raised annualized 2025 operating revenue guidance to US$218.6 million. Throughout this period, management emphasized momentum, a deep institutional base, and a "robust pipeline," reinforcing confidence in DeFi Alpha's continued ability to execute. 

Behind these promotions, the complaint alleges, DeFi Technologies was experiencing delays in executing its DeFi Alpha arbitrage strategy, was understating the competitive squeeze from other DAT companies, and was unlikely to meet its 2025 revenue guidance. As a result, investors allege defendants downplayed the true scope and severity of these issues, rendering their public statements materially false and misleading during the class period.

The Truth Emerges

The first cracks appeared on November 6, 2025, when DeFi Technologies issued a press release stating that DAT companies had "absorbed or delayed a significant share of arbitrage opportunities over the past year." While management tried to frame confidence in DeFi Alpha's ability to generate non-correlated returns, the disclosure undercut prior assurances about the strategy's continued execution. 

Eight days later, on November 14, 2025, the company released Q3 2025 results, revealing a revenue decline of nearly 20% and cutting its 2025 revenue forecast from $218.6 million to approximately $116.6 million. Management admitted the reduction was "primarily due 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," directly contradicting earlier statements touting execution and raised guidance.

Market Reaction

Investors responded quickly. On November 6, 2025, after the company disclosed that DATs had absorbed or delayed arbitrage opportunities, DeFi Technologies' stock fell $0.13 per share, or 7.43%, to close at $1.62 per share that day. Pressure intensified after the November 14, 2025 Q3 release and lowered forecast. Over the next two trading sessions, the stock fell a further $0.40 per share, or 27.59%, to close at $1.05 per share on November 17, 2025, amid the company's report of a nearly 20% revenue decline and a significantly reduced 2025 revenue outlook.

Next Steps

• Submissions for lead plaintiff are due: January 30, 2026.

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

• The Court will then consider motion for class certification.

• The Court will later consider a Motion to Dismiss.

To learn if you are eligible for recovery under the DEFT securities class action lawsuit, visit the case submission page here. 

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.