DeFi Technologies Faces Investor Litigation and Strategic Headwinds

Shares of DeFi Technologies (NASDAQ: DEFT) are under scrutiny as a critical deadline approaches for investors to join a consolidated securities class action filed against the company in the United States. The legal challenge coincides with a period of significant operational pressure, following a sharp reduction in revenue guidance and persistent competitive forces in the digital asset sector.

A group of shareholder rights law firms, including Kirby McInerney LLP, Glancy Prongay & Murray LLP, and Faruqi & Faruqi, LLP, have recently issued notices to investors. These alerts pertain to an ongoing federal securities class action. The central date for affected parties is January 30, 2026, which is the deadline to petition the court for appointment as lead plaintiff in the case.

The lawsuits allege that DeFi Technologies made materially false and misleading statements concerning its business operations. The core accusations focus on three primary areas:

• A failure to disclose implementation delays affecting its "DeFi Alpha" arbitrage strategy.
• Alleged misrepresentation of the competitive intensity from other Digital Asset Treasury (DAT) providers.
• The issuance of a fiscal 2025 revenue forecast that is claimed to have been unrealistic given the undisclosed operational challenges.

These allegations are directly tied to the company's subsequent decision to slash its revenue outlook, an announcement that triggered substantial share price declines.

Financial Guidance Cut Erodes Market Confidence

A pivotal event fueling the current turmoil was a drastic downward revision of the company's 2025 revenue projection. In mid-November 2025, DeFi Technologies reduced its expected revenue from an initial $218.6 million to approximately $116.6 million.

This reduction of roughly $102 million was attributed by management to delays in realizing arbitrage opportunities. Key factors cited included increased competition from other DAT companies and a greater convergence in digital asset price movements, which reduced the frequency of profitable arbitrage scenarios. These explanations now form the basis for the legal claims that the company previously overstated its competitive position and understated risks to its core strategy.

Share Price Reaction Reflects Deepening Skepticism

The market has reacted strongly to the company's disclosures. Trading at $1.09 at Friday's close, DeFi Technologies' stock registered a daily loss of approximately 3.54%, continuing a downward trend that began in November.

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

Significant price movements followed two key corporate announcements:

• November 6, 2025: The share price fell about 7.4% to $1.62 after management stated that digital asset treasuries had "absorbed or delayed a significant portion of arbitrage opportunities."
• November 14-17, 2025: Following the release of third-quarter financial results, the equity lost around 27.6% over two trading sessions, closing at $1.05.

These pronounced swings highlight investor doubt regarding the execution of the arbitrage strategy and the credibility of prior management forecasts.

Operational and Leadership Changes Amid Challenges

Despite the legal and financial headwinds, DeFi Technologies continues to pursue business development. On December 10, 2025, TenX Protocols Inc.—a portfolio and advisory client of DeFi Technologies—commenced trading on the TSX Venture Exchange. While this marks a milestone for the venture segment, broader market concerns remain fixed on the core business and litigation.

The company also underwent a leadership change in November, with the then-CEO stepping down and transitioning to an advisory role. This move coincided with the weak earnings release, further contributing to market uncertainty.

Implications for Shareholders

For current investors, the impending class action deadline is a immediate consideration. Those seeking to actively pursue claims within the U.S. legal framework must be mindful of the January 30, 2026 cutoff date.

In equity markets, the stock is trading near recent lows. This valuation reflects pervasive doubts about the company's ability to regain its previously projected revenue trajectory within the increasingly competitive digital asset landscape.