BitGo faces securities class action as BTGO slides 73% from IPO

BitGo Holdings Inc. faces a securities class action lawsuit alleging it downplayed the risk of declining digital asset prices ahead of its January initial public offering, as shares trade about 73% below the $18 offer price.

"The company made false and misleading statements to the market," the complaint alleges, according to the Schall Law Firm, which filed a proposed class action in federal court. BitGo "downplayed the risk of declining digital asset prices as it touted its financial performance and business prospects," the firm said in a statement.

The class action covers investors who purchased BitGo securities between Jan. 22, 2025 and May 13, 2026, as well as those who bought in the Jan. 22 IPO. BTGO closed Thursday at $4.80, down 4.67%, extending a roughly 73% slide from its public debut at $18 on Jan. 22. The company earlier this month cut 15% of its workforce, or about 90 employees, according to a company announcement. BitGo disclosed 603 full-time employees as of Dec. 31 in its 2025 annual report published in March.

Bronstein, Gewirtz & Grossman also filed a separate class action on June 26, alleging violations of federal securities laws. Both lawsuits seek to recover damages on behalf of shareholders who bought BitGo securities during the class period. The lead plaintiff deadline is Aug. 7, 2026.

The lawsuits introduce significant legal and financial uncertainty for BitGo, a crypto custody and trading platform that went public during a period of volatile digital asset prices. The company is still hiring for 51 roles across various regions, according to its job board, even as the broader crypto sector has seen more than 5,000 job cuts this year. BitGo did not immediately respond to a request for comment on the litigation.

This article is for informational purposes only and does not constitute investment advice.