DeFi Technologies Faces Investor Lawsuit Amidst Revenue Downgrade and Leadership Shift

A significant class action lawsuit has been filed against DeFi Technologies, amplifying existing pressures on the company. The legal action, lodged in a U.S. court, alleges securities law violations related to past statements concerning its DeFi Alpha arbitrage division and its 2025 revenue forecast. This development compounds challenges stemming from a sharp guidance reduction, substantial share price declines, and a recent change in chief executive.

Pomerantz LLP has submitted a class action complaint to the United States District Court for the Eastern District of New York (Case No. 25‑cv‑06637). The lawsuit targets the company and several of its officers. Investors who purchased DeFi Technologies securities between May 12, 2025, and November 14, 2025, are included in the proposed class.

The filing seeks damages, citing alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 due to purportedly misleading market communications. The deadline for investors to apply for lead plaintiff status is January 30, 2026. Until then, legal uncertainty is expected to remain a key overhang on the equity.

Revenue Forecasts: From Promise to Pullback

The company's financial projections have been at the heart of its recent troubles. Shortly after its NASDAQ listing in May 2025, DeFi Technologies issued full-year 2025 revenue guidance of approximately $201 million. This figure was subsequently raised in August 2025 to $218.6 million.

A dramatic reversal occurred on November 14, 2025. Management slashed the forecast to about $116.6 million, marking a drop of nearly 47% from the August projection. Company leadership attributed the downgrade to "delays in the execution of DeFi Alpha arbitrage opportunities" and increased competition from other Digital Asset Treasury (DAT) firms.

Core Allegations in the Complaint

The lawsuit centers on communications regarding the DeFi Alpha arbitrage trading unit. Plaintiffs specifically allege that the company and its management:

• Made materially false or misleading statements concerning the DeFi Alpha arbitrage strategy
• Failed to adequately disclose the competitive pressures from rival DAT companies
• Did not reveal delays in implementing its core arbitrage strategy in a timely manner
• Issued a 2025 revenue forecast that was unrealistic given known internal and market challenges

A central legal question is whether the substantial November guidance correction was foreseeable earlier and should have been communicated to investors.

Should investors sell immediately? Or is it worth buying DeFi Technologies?

Share Price Reaction and Analyst Adjustments

The market reacted negatively to the deteriorating outlook:

• November 6, 2025: Shares declined 7.43% to $1.62 following initial warning signs.
• November 14-17, 2025: Over two trading sessions, the stock plummeted 27.59% to $1.05.
• Mid-January 2026: The share price hovered around $1.08, a steep fall from its May 2025 high of $4.25.

Equity researchers swiftly revised their targets downward in response:

• Maxim Group: Reduced price target from $7 to $2, while maintaining a "Buy" rating.
• Northland: Cut target from $3.60 to $1.80, retaining an "Outperform" recommendation.
• B. Riley: Lowered target from $5.71 to $3.

According to TipRanks data, the average 12-month price target from five analysts currently stands at $3.06, with a range from $1.80 to $5.50, reflecting heightened uncertainty.

Leadership Change Adds to Instability

Compounding the operational and legal issues, CEO Olivier Roussy Newton stepped down from the board and his executive role concurrent with the weak third-quarter 2025 results. His move to an advisory position introduces further uncertainty as the company navigates its current challenges.

Financial Position and Market Context

The situation underscores the volatile nature of the digital asset sector. DeFi Technologies currently holds a market capitalization of approximately $385 million. On a trailing twelve-month basis, the firm has generated $68.4 million in revenue.

A cash position of $124.9 million provides a liquidity buffer to fund both operational realignment and the ongoing legal proceedings.

Investor attention now turns to the January 30, 2026, deadline for lead plaintiff motions. Management's forthcoming communications regarding DeFi Alpha's progress, final 2025 revenue figures, and the permanent leadership structure will be critical in determining whether investor confidence can begin to recover.