Bakkt faces a collective lawsuit from investors

GateUser-6433627c · 2025-04-05T00:04:56+00:00

The American encryption accomplice and trading platform Bakkt is facing a collective lawsuit from investors, accusing it of failing to adequately disclose its significant customer dependency and allegedly disseminating false information. Investors claim that the termination of its major customer partnership will lead to a sharp decline in revenue and are requesting a jury trial. Defendants include the former CEO and current executives. Investors believe that the company's failure to timely disclose risks violates securities laws, resulting in significant losses.

GateUser-6433627c

2025-04-05 00:04:56

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[Bakkt sued by investors] The American encryption custody and trading platform Bakkt has been collectively sued by investors, accusing it of making false or misleading statements without adequately disclosing that its revenue heavily relies on key clients such as Webull. The lawsuit, led by investor Guy Serge A. Franklin, was filed on April 2 in the Southern District of New York federal court, seeking a jury trial. The plaintiffs claim that Webull contributed 74% of Bakkt’s encryption service revenue from 2023 to 2024, while Bank of America accounted for 17% of its loyalty service revenue in the first three quarters of 2024. The termination of cooperation between the two companies will lead to a drastic reduction of 73% in the company’s overall revenue. The defendants also include the company’s former CEO Gavin Michael, current CEO Andrew Main, and interim CFO Karen Alexander. Investors believe that Bakkt failed to timely disclose the risks associated with the termination of contracts with key clients, violating U.S. securities laws and resulting in significant losses.

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