BitGo Holdings Inc. soft-pedaled the scope of risks tied to faltering digital asset prices on the cryptocurrency wallet firm’s financials during its initial public offering, a proposed class action said.

The IPO documentation was negligently prepared, overhyping its business prospects and performance as a result of downplayed risks, an investor told the US District Court for the Eastern District of New York. And BitGo and its top two executives continued to mislead investors about its fiscal capabilities in the wake of the January 2026 debut, said the investor’s complaint filed Monday.

BitGo sold more than 11.8 million shares at $18 …