DeFi Technologies Faces Investor Backlash After Forecast Slashed

Investors in DeFi Technologies are navigating a perfect storm of negative developments. A severe reduction in the company's revenue outlook has triggered a sharp sell-off in its shares and sparked a wave of legal action, while an unexpected leadership change adds another layer of uncertainty to the situation.

Adding to the operational and legal challenges, DeFi Technologies has announced a change at its highest level. Olivier Roussy Newton has stepped down from his roles as Chief Executive Officer and Chairman of the board. He has been succeeded by company co-founder Johan Wattenström. Although Newton will remain connected as an advisor and shareholder, the timing of his departure, concurrent with the other crises, raises questions about corporate stability.

Wattenström now faces the immediate task of restoring investor confidence and addressing the firm's strategic hurdles. A key date looms on the calendar: investors seeking to join the class action suits as lead plaintiffs must register by January 30, 2026, a deadline that will further define the scale of the company's legal exposure.

Revenue Projection Cut Nearly in Half

The core of the current crisis stems from a recent quarterly update. Company management issued a drastic downward revision to its full-year 2025 revenue guidance. The initial target of $218.6 million has been slashed to approximately $116.6 million, representing a staggering 47% reduction.

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

Officials cited three primary reasons for this significant correction:
* Implementation delays affecting its arbitrage strategies (DeFi Alpha).
* Intensifying competitive pressure from the growing number of firms operating Digital Asset Treasuries (DAT).
* An anticipated consolidation of cryptocurrency prices in the latter half of 2025.

The market's reaction was swift and severe. In the two trading sessions following the announcement, the company's stock price plummeted 27.6%, closing at $1.05.

Legal Repercussions Mount

The missed forecasts have now evolved into formal legal proceedings. Several U.S. law firms have filed class action lawsuits alleging securities fraud. The central allegation is that DeFi Technologies violated provisions of the Securities Exchange Act.

Plaintiffs specifically accuse management of failing to disclose known delays in its arbitrage strategy and of downplaying the competitive threats. The lawsuits contend that the original financial projections were materially misleading because they were issued despite internal awareness of these operational headwinds. The class period referenced in the filings spans from May 12, 2025, to November 14, 2025.