DeFi Technologies Faces Investor Lawsuits Following Revenue Forecast Cut

A significant downward revision to its 2025 revenue guidance has placed DeFi Technologies in the crosshairs of investor litigation. Specialized securities law firms are now actively building class action cases, urging shareholders to join the suits by a late January deadline. The allegations center on a steep stock decline and the subsequent resignation of the company’s chief executive.

The Core Allegations and Financial Revisions

Central to the legal challenges is a claim that DeFi Technologies failed to disclose mounting operational headwinds in a timely manner, thereby rendering previous optimistic statements misleading. The catalyst was the company’s announcement in mid-November 2025 that it was slashing its full-year revenue projection by approximately 47%. The forecast was reduced from an initial $218.6 million to roughly $116.6 million.

Management attributed this substantial correction to delays in launching its “DeFi Alpha” arbitrage strategy and unexpectedly intense competition within the digital asset treasury solutions sector. The market’s reaction was swift and severe: the company’s share price plummeted 27.59% over two trading sessions, closing at $1.05. Shortly after this disclosure, CEO Olivier Roussy Newton stepped down from his role.

Legal Proceedings Gather Momentum

In response, multiple U.S. law firms have initiated class action suits on behalf of investors. Pomerantz LLP filed a complaint (Case No. 25-cv-06637), and The Rosen Law Firm, among others, has issued calls for lead plaintiffs. The class period defined in the litigation encompasses investors who purchased securities between May 12, 2025, and November 14, 2025. The deadline to file for lead plaintiff status is January 30, 2026.

These legal woes emerge during a period of heightened investor caution toward cryptocurrency and decentralized finance assets. Broader market commentary in January 2026 points to regulatory pressures and significant “whale activity” in markets like Ethereum contributing to a risk-averse sentiment.

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

Analyst Adjustments and Strategic Challenges

In the wake of the guidance cut, several equity research firms revised their financial models and price targets for DeFi Technologies. While maintaining positive ratings, the adjustments were pronounced:

• Benchmark lowered its target from $8.00 to $3.00, retaining a “Buy” recommendation.
• Northland Capital Markets reduced its target from $5.00 to $2.50, keeping an “Outperform” rating.
• B. Riley cut its price target from $5.71 to $3.00.

These revisions primarily reflect a later realization of anticipated revenues from the arbitrage business. Operationally, the company’s immediate challenge is to demonstrate that its delayed “DeFi Alpha” strategy can be successfully implemented and scaled according to the new timeline.

Path Forward for Investors and the Company

The stock has found a tentative equilibrium around the $1.05 level, a price point now viewed as a key technical reference following the initial sell-off. This valuation appears to reflect the newly established, lower revenue base of $116.6 million.

Looking ahead, the coming quarters are critical. DeFi Technologies must now execute against its revised forecast without further delays to begin rebuilding recently shattered investor confidence. Simultaneously, the company must manage the financial and reputational risks associated with the pending class action litigation, the potential costs of which remain uncertain. The focus for the market will be squarely on the firm’s ability to deliver on its promises and navigate an increasingly competitive landscape.