Bakkt investors file class-action lawsuit after loss of Webull, BoA contracts
A group of investors with cryptocurrency custody and trading firm Bakkt Holdings filed a class-action lawsuit alleging false or misleading statements and a failure to disclose certain information.
Lead plaintiff Guy Serge A. Franklin called for a jury trial as part of a complaint against Bakkt, senior adviser and former CEO Gavin Michael, CEO and president Andrew Main, and interim chief financial officer Karen Alexander, according to an April 2 filing in the US District Court for the Southern District of New York.
The group of investors allege damages as the result of violations of US securites laws and a lack of transparency surrounding its agreement with clients: Webull and Bank of America (BoA).
April 2 complaint against Bakkt and its executives. Source: PACER
The loss of Bank of America and Webull will result “in a 73% loss in top line revenue” due to the two firms making up a significant percentage of its services revenue, the investor group alleges in the lawsuit. The filing stated Webull made up 74% of Bakkt’s crypto services revenue through most of 2023 and 2024, and Bank of America made up 17% of its loyalty services revenue from January to September 2024.
Related: Bakkt names new co-CEO amid re-focus on crypto offerings
Bakkt disclosed on March 17 that Bank of America and Webull did not intend to renew their agreements with the firm ending in 2025. The announcement likely contributed to the company’s share price falling more than 27% in the following 24 hours. The investors allege Bakkt “misrepresented the stability and/or diversity of its crypto services revenue” and failed to disclose that this revenue was “substantially dependent” on Webull’s contract.
“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 suit.
Other law offices said they were investigating Bakkt for securities law violations, suggesting additional class-action lawsuits may be in the works. Cointelegraph contacted Bakkt for a comment on the lawsuit but did not receive a response at the time of publication.
Prices affected by Trump Media reports
Bakkt’s share price surged roughly 162% in November 2024 after reports suggested that then-US President-elect Donald Trump’s media company was considering acquiring the firm. As of April 2025, neither company has officially announced a deal.
Shares in Bakkt (BKKT) were $8.15 at the time of publication, having fallen more than 36% in the previous 30 days.
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A Reform UK councillor has defected to the Tories after becoming “uncomfortable” with Nigel Farage’s party.
James Buchan said he wanted to be able to “look my family in the eye and say, ‘that’s not who I am'” after his former party announced plans to scrap indefinite leave to remain.
The Dartford Borough councillor, who won his seat for Reform in a by-election in July, said the policy creates a “huge amount of fear and anxiety”.
He also accused the party of having “a pretty unfortunate way of treating people”.
Read more: What is indefinite leave to remain?
James Buchan. Pic: Dartford Borough Council
In a statement, Mr Buchan said: “I stood for election with the sole aim of working for my community and getting things done for local families.
“Having had the opportunity to see Reform from the inside, I’ve concluded that the party doesn’t really have the experience or ambition to do that.”
He said “relying on rhetoric and slogans isn’t going to help real families in communities” like his and “the more I saw of Reform UK, the more uncomfortable I felt to be part of it”.
“Things like a proposal to remove indefinite leave to remain from all non-EU residents who are working here perfectly legally is an example that could be devastating for decent people who have built a life here and contribute to our country,” he added.
Read more from Sky News:
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Earlier this year Reform announced it would axe indefinite leave to remain and replace it with new visas that would require migrants to reapply to live in the UK as part of plans to tighten immigration.
Conservative council leader Jeremy Kite welcomed Mr Buchan, who represents the Stone House ward, to the party.
“James knows that getting elected isn’t about power, it’s about service and being supportive of people,” he said.
A Reform source told the PA news agency: “He got elected in July 2025 as a Reform councillor. He should resign his seat but he won’t because he knows he will lose under the Tory banner.
“We look forward to winning this seat back as soon as possible.”
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