DWF Labs subsidiaries have filed a $141 million lawsuit against BitGo, alleging the custodian failed to enforce agreed token lock-up restrictions, allowing premature or unauthorized token releases. The case represents one of the larger custodian-breach claims in crypto and centers on whether custody agreements adequately bind the custodian to client-specified transfer controls.
For Armada's crypto repo desk, this is a direct signal to audit Fireblocks contractual terms around collateral hold instructions and transfer restrictions. If Armada ever imposes lock-up or hold conditions on BTC, ETH, or SOL collateral, the MSA must clearly assign liability to Fireblocks for unauthorized releases. Legal should review indemnification and liability-cap clauses now.