An investment firm is bringing a proposed securities class action accusing DeFi Technologies Inc. of misleading them and others about the extent of competition the crypto treasury company faced and other factors that allegedly negatively impacted its stock price.

Linkedto Partners LLC said in a Monday complaint that DeFi Technologies, its former CEO Olivier Roussy Newton, and executives Paul Bozoki and Stefan Hanssen issued press releases and public statements that "downplayed the true scope and severity" of the negative impact the crowded field of crypto treasury companies would have on the firm's business and financial results.

DeFi Technologies is a so-called digital asset treasury company, which stockpiles crypto to provide indirect exposure to investors as part of its strategy. Previously known as Valour Inc. before rebranding in July 2023, the firm also develops exchange-traded products in Canada that synthetically track the value of certain decentralized finance protocols, or projects that use autonomous software to execute financial services.

Part of its business includes an offering called DeFi Alpha, the complaint said, which the firm's website described as "a specialized arbitrage trading desk" that capitalized on crypto arbitrage opportunities. According to the complaint, the firm consistently reassured investors through public statements that the trading desk drove company revenues, and that the firm expected that trend to continue.

However, the company acknowledged in a November 2025 report that the proliferation of other crypto treasury companies "absorbed or delayed" many of the arbitrage opportunities the company hoped to capitalize on, and its stock price subsequently fell more than 7%, according to the complaint. According to the investors, this was a sudden departure from the strong revenue projections and positive outlook Defi Technologies had previously messaged to investors.

"Defendants failed to disclose, inter alia, the true scope and severity of the risks posed by DeFi Technologies' delays in executing its arbitrage strategy through DeFi Alpha, and by the competition that DeFi Technologies faced from other [digital asset treasury] companies," said the complaint.

The announcement of a leadership transition that would see Newton exit the CEO position to an advisory role also preceded a 27% drop in the firm's stock price.

"As a result of defendants' wrongful acts and omissions, and the precipitous decline in the market value of the company's securities, plaintiff and other class members have suffered significant losses and damages," said the complaint.

The individual executives had access to the firm's filings with the U.S. Securities and Exchange Commission and press releases and "had the ability and opportunity to prevent their issuance or to cause them to be corrected," the investors said.

Linkedto Partners is seeking to certify a class of all those who purchased DeFi Technologies securities between May and November of this year. Counsel for Linkedto Partners did not immediately respond to a request for comment Tuesday.

A representative for DeFi Technologies said in a statement to Law360 that the firm is aware of the suit.

"We believe that the allegations in the complaint are meritless and will vigorously defend the company and its executives against this plaintiff's claims," the firm said.

The suit comes amid the proliferation of digital asset treasury companies, or DATs. The publicly traded firms stockpile crypto assets as part of their value proposition. While some firms have padded their corporate coffers with bitcoin since around 2020, this year has seen a number of DATs adopt strategies around less popular crypto assets.

Linkedto Partners is represented by Pomerantz LLP, which served as lead counsel in an investor class action accusing Strategy, an earlier adopter of a bitcoin treasury strategy, of downplaying the risks of bitcoin volatility and the potential risks of changing the way it accounted for the tokens. The investors in the Strategy suit voluntarily dismissed the action in August.

Linkedto Partners is represented by Jeremy A. Lieberman and J. Alexander Hood II of Pomerantz LLP.

Defense counsel information was not immediately available.

The case is Linkedto Partners LLC v. DeFi Technologies Inc. et al., case number 1:25-cv-06637, in the U.S. District Court for the Eastern District of New York.