DeFi Technologies finds itself navigating a perfect storm of legal and operational headwinds. The fintech company is confronting a wave of shareholder litigation in the United States, compounding difficulties stemming from a disappointing quarterly report and a significant reduction in its financial outlook. As management, now under co-founder Johan Wattenström as CEO, attempts a strategic expansion into Brazil, investors are weighing whether mounting legal risks now overshadow the firm’s business prospects.
A Forecast Revision Sparks Market and Legal Reaction
The immediate catalyst for the current situation was the company’s third-quarter results released on November 13. The figures delivered a substantial shock to the market. DeFi Technologies slashed its full-year 2025 revenue forecast dramatically, reducing it from approximately $219 million to just $117 million.
The market’s verdict was swift and severe. The company’s share price plummeted more than 27% across two trading sessions. Operational results for the quarter also disappointed, with revenue declining year-over-year from $28.1 million to $22.5 million. Company leadership attributed this underperformance to delays in its arbitrage trading activities and a consolidation of cryptocurrency prices during the latter half of the year.
Law Firms Mobilize for Class Action
In the wake of this forecast shock, legal pressure on the company is intensifying. Several U.S. law firms are now mobilizing investors, reminding them of an approaching deadline to join a consolidated class action lawsuit filed in the U.S. District Court for the Southern District of New York.
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The core allegations in the complaint are serious. Plaintiffs contend that between May and November 2025, DeFi Technologies’ management concealed material information, thereby misleading investors. Specifically, the lawsuit points to undisclosed delays in implementing the “DeFi Alpha” arbitrage strategy, identified as a central revenue driver for the business. Furthermore, the legal filing accuses executives of underestimating competitive pressures within the Digital Asset Treasury sector and of having issued unrealistic sales targets.
Strategic Countermove: A Push into Latin America
Amid this turbulence and the recent executive transition, the company is striving to regain operational momentum. A cornerstone of this effort is a targeted expansion into Latin America.
Despite its challenges, DeFi Technologies’ subsidiary, Valour, has secured approval from the Brazilian exchange, B3, to list four cryptocurrency exchange-traded products (ETPs), including offerings for Bitcoin and Ethereum. Trading is scheduled to commence on December 17, 2025. The Brazilian market is viewed as strategically vital, as the country ranks fifth globally in cryptocurrency adoption and operates within a well-defined regulatory framework.
A Critical Period Ahead
The coming weeks represent a crucial test for DeFi Technologies. The market will closely watch whether the Brazilian launch on December 17 can generate fresh commercial momentum. Simultaneously, the firm faces a looming legal deadline of January 30, 2026, for the class action proceedings. A key question remains: how effectively can the new leadership team manage these significant legal challenges without further straining the company’s core business operations?
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