Important Information Regarding Section 20(a) Individual Liability Claims Against BitGo’s CEO and CFO for Alleged $14.8 Million Net Loss and 15.71% Stock Decline
NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) — SueWallSt alerts investors in BitGo Holdings, Inc. (NYSE: BTGO) of a pending securities class action naming senior executives as individual defendants. Class Period: January 22, 2025 through May 13, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (888) SueWallSt.
BitGo shares lost $1.43 per share (15.71%) on March 27, 2026, after the Company disclosed a $14.8 million net loss for fiscal year 2025. A second disclosure on May 13, 2026, revealed a $60.7 million quarterly net loss, triggering an additional 17.2% decline. The Court has set August 7, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
Michael A. Belshe, BitGo’s Co-Founder, Chief Executive Officer, Chief Technology Officer, President, and Director, and Edward Reginelli, BitGo’s Chief Financial Officer, are both named as Exchange Act Individual Defendants. The complaint contends both executives possessed the power and authority to control the contents of BitGo’s SEC filings, press releases, and other market communications. Both were provided with copies of the Company’s SEC filings and press releases prior to or shortly after their issuance, the action alleges, and had the ability and opportunity to prevent their issuance or cause them to be corrected.
Section 20(a) Control Person Framework
The complaint asserts claims under Section 20(a) of the Securities Exchange Act of 1934, which imposes liability on individuals who acted as “controlling persons” of the Company. As pleaded, Belshe and Reginelli directed BitGo’s day-to-day operations and controlled the substance of public disclosures that allegedly understated the scope and severity of risk that declining digital asset prices posed to the Company’s business and financial performance.
Sarbanes-Oxley Certification Obligations
Under Sections 302 and 906 of the Sarbanes-Oxley Act, the CEO and CFO of a public company are required to personally certify the accuracy and completeness of financial reports filed with the SEC. The complaint charges that these certifications were made in connection with BitGo’s Registration Statement, Prospectus, and subsequent periodic filings, at a time when the Company’s financial statements and forward-looking representations allegedly lacked a reasonable basis.
Alleged Control Person Liability
- Belshe and Reginelli allegedly controlled BitGo’s public communications regarding digital asset price risk and business resilience throughout the Class Period
- Both executives signed or authorized the signing of the Registration Statement filed in connection with BitGo’s January 2026 IPO
- The complaint identifies additional individual defendants who served as Directors and also signed the Registration Statement: Chen Fang (Chief Revenue Officer), Brian Brooks, Justin Evans, Brian Murray, Sunita Parasuraman, and Vivek Pattipati
- The action alleges these individuals had access to material nonpublic information and knew that adverse facts had not been disclosed to the investing public
- Claims are brought under both Section 15 of the Securities Act of 1933 and Section 20(a) of the Securities Exchange Act of 1934
“Corporate officers have a duty to ensure their companies’ public statements are accurate and complete. When executives certify financial reports and authorize offering documents, they assume personal responsibility for the information conveyed to investors.” — Joseph E. Levi, Esq.
Submit your information to join the recovery
or call Joseph E. Levi, Esq. at (888) SueWallSt.
SueWallSt — Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the BTGO Lawsuit
Q: Who are the defendants named in the BTGO lawsuit? A: The complaint names BitGo Holdings, Inc. and individual defendants including CEO Michael A. Belshe, CFO Edward Reginelli, and six additional directors who signed the Registration Statement. Claims are brought under the Securities Act of 1933 and the Securities Exchange Act of 1934.
Q: What is the BTGO lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is August 7, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
Q: What do BTGO investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible as a class member.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I already sold my BTGO shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
