Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against DeFi Technologies Inc. due to allegations of misleading statements and failure to disclose critical business challenges that negatively impacted the company's financial performance [2][4]. Group 1: Legal Investigation and Claims - Faruqi & Faruqi, LLP is encouraging investors who suffered losses in DeFi Technologies between May 12, 2025, and November 14, 2025, to discuss their legal options [1]. - A federal securities class action has been filed against DeFi Technologies, with a deadline of January 30, 2026, for investors to seek the role of lead plaintiff [2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [3]. Group 2: Allegations Against DeFi Technologies - The complaint alleges that DeFi Technologies and its executives violated federal securities laws by making false or misleading statements regarding their DeFi arbitrage strategy and competition [4]. - Specific allegations include delays in executing the DeFi arbitrage strategy, underestimating competition, and failing to meet previously issued revenue guidance for fiscal year 2025 [4]. - The company reported a revenue decline of nearly 20% and significantly lowered its 2025 revenue forecast from $218.6 million to approximately $116.6 million due to these issues [6]. Group 3: Stock Price Impact - Following the announcement of a significant revenue decline and lowered forecasts, DeFi Technologies' stock price fell by $0.40 per share, or 27.59%, closing at $1.05 per share on November 17, 2025 [7]. - On November 6, 2025, the stock price had already dropped by $0.13 per share, or 7.43%, after a press release regarding the company's arbitrage trade [5].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against DeFi Technologies Inc. due to allegations of violations of federal securities laws, encouraging affected investors to come forward before the January 30, 2026 deadline for lead plaintiff applications in a federal securities class action [3][9]. Group 1: Allegations Against DeFi Technologies - The complaint alleges that DeFi Technologies and its executives made false and misleading statements regarding the company's DeFi arbitrage strategy, which was a key revenue driver [5]. - It is claimed that DeFi Technologies understated the competition it faced from other digital asset trading (DAT) companies, impacting its ability to execute its arbitrage strategy [5]. - The company is accused of failing to meet its previously issued revenue guidance for fiscal year 2025 due to these issues [5]. Group 2: Financial Performance and Stock Impact - On November 14, 2025, DeFi Technologies reported a nearly 20% revenue decline, significantly below market expectations, and lowered its 2025 revenue forecast from $218.6 million to approximately $116.6 million [7]. - Following the negative financial disclosures, DeFi Technologies' stock price fell by $0.40 per share, or 27.59%, closing at $1.05 per share on November 17, 2025 [8]. - The company attributed the revenue reduction to delays in executing arbitrage opportunities due to increased competition and consolidation in digital asset price movements [7]. Group 3: Legal and Investor Actions - Investors who purchased securities in DeFi Technologies between May 12, 2025, and November 14, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights [1][3]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding DeFi Technologies' conduct [10].

Core Insights - DeFi Technologies is facing significant legal challenges due to allegations of violating federal securities laws by making false or misleading statements regarding its business operations and financial performance [2][4]. Financial Performance - DeFi Technologies reported a revenue decline of nearly 20% in Q3 2025, falling short of market expectations [4]. - The company significantly lowered its 2025 revenue forecast from $218.6 million to approximately $116.6 million, attributing this to delays in executing its DeFi Alpha arbitrage strategy [4]. Stock Price Impact - Following the announcement of the revenue decline and lowered forecast, DeFi Technologies' stock price fell by $0.40 per share, or 27.59%, closing at $1.05 per share on November 17, 2025 [5]. Management Changes - Concurrent with the financial disclosures, DeFi Technologies announced that CEO Newton would transition to an advisory role, indicating potential leadership instability [4]. Legal Proceedings - A lead plaintiff has been appointed to oversee the litigation on behalf of the class of investors affected by the alleged misconduct of DeFi Technologies [6].

Core Viewpoint - The lawsuit against DeFi Technologies alleges securities fraud, claiming that the company misled investors regarding its operational challenges and financial performance during the specified class period [3]. Summary by Sections Lawsuit Details - The lawsuit is on behalf of investors who purchased DeFi securities from May 12, 2025, to November 14, 2025, alleging that the company made false statements and failed to disclose critical operational issues [3]. - Key allegations include delays in executing the DeFi arbitrage strategy, underestimating competition from digital asset treasury companies, and the likelihood of not meeting revenue guidance for fiscal year 2025 [3]. Financial Performance - On November 6, 2025, DeFi reported that "DATs have absorbed or delayed a significant share of arbitrage opportunities," leading to a share price decline of approximately 7.43%, from $1.75 to $1.62 [4]. - On November 14, 2025, DeFi announced a nearly 20% revenue decline, significantly lowering its 2025 revenue forecast from $218.6 million to approximately $116.6 million, attributing this to delays in executing arbitrage opportunities [5]. - Following the financial results announcement, DeFi's share price fell by approximately 14.63%, from $1.23 to $1.05 [5].