Faruqi & Faruqi, LLP Launches Investigation of DeFi Technologies for Investor Claims

Investigation of DeFi Technologies by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a leading national securities law firm, has opened an investigation into potential claims against DeFi Technologies Inc. This initiative comes in light of allegations that the company made numerous misstatements to investors while facing significant obstacles in its operations in the decentralized finance (DeFi) niche.

Background of the Investigation

Between May 12, 2025, and November 14, 2025, investors who purchased or acquired securities from DeFi Technologies could potentially have legal recourse. Faruqi & Faruqi advises anyone affected during this period to reach out for information concerning their rights and options.

Senior Partner James (Josh) Wilson from Faruqi & Faruqi highlighted the gravity of these claims, indicating that they stem from allegations that the executives allowed misleading information to circulate. These actions potentially misled investors regarding the company’s challenges in executing its DeFi arbitrage strategies—considered vital for its revenue generation.

Allegations Against DeFi Technologies

According to the firm, there are several specific points of concern regarding DeFi Technologies' conduct:

1. Delays in Execution: The company reportedly faced significant delays in implementing its DeFi arbitrage strategy, an essential revenue driver.
2. Underestimating Competition: The available competition from digital asset trading (DAT) companies was apparently underestimated by DeFi Technologies, which impacted its operations and strategies.
3. Revenue Guidance Issues: Problems faced led to a substantial likelihood of the company failing to meet its own revenue guidance for 2025, as outlined in prior financial documents.
4. Misleading Statements: The firm argues that the public statements made by DeFi were materially false and misleading at all relevant times—a point critical in any potential litigation.

This growing discontent among investors culminated on significant financial disclosure dates. On November 6, DeFi Technologies announced an arbitrage trade that did not meet expectations and eventually led to a decline in stock value. Moreover, the company reported a startling almost 20% revenue decrease in their third-quarter results on November 14, 2025, alongside a drastic reduction in their forecasted revenue from $218.6 million to about $116.6 million due to these impacting factors.

Impact of the Allegations on Stock Value

Following the disappointing news and revised forecasts, DeFi Technologies' stock price witnessed a substantial decline. The news led to an approximately 27.59% drop over two trading sessions, highlighting the severe market reaction to the revelations and potential ramifications of deceptive practices.

The law firm is particularly urging individuals with relevant information, including former employees and other stakeholders, to come forward. The call for transparency aims to support the investigation and potentially ease burdens on affected investors.

How to Participate

Faruqi & Faruqi is reminding investors that the deadline to seek the role of lead plaintiff in the federal securities class action against DeFi Technologies is January 30, 2026. Those interested in pursuing this option or wanting to learn more about their rights can contact Senior Partner Josh Wilson directly. Investors are encouraged to act swiftly to preserve their rights and possibly benefit from any recovery play associated with this lawsuit against DeFi Technologies.

The investigation underscores the importance of corporate governance and the obligation of companies to uphold investor trust through transparent and accurate disclosures. As investigations proceed, updates and all necessary information can be found through Faruqi & Faruqi's dedicated channels.

For ongoing updates, interested parties can connect through social media platforms like LinkedIn, X, or Facebook, as the firm continues to advocate for investors affected by these events.

Conclusion

The unfolding investigation into DeFi Technologies Inc. by Faruqi & Faruqi illustrates a growing concern regarding corporate accountability in emerging financial markets. Stakeholders are reminded to stay informed and proactive, as the legal landscape surrounding digital financial assets evolves.