Bakkt faces class action lawsuit from investors

BlockBeats News: On April 5th, Bakkt, a US cryptocurrency custody and trading platform, was collectively sued by investors for making false or misleading statements without fully disclosing its heavy reliance on key clients such as Webull for revenue. The lawsuit, led by investor Guy Serge A. Franklin, was filed on April 2nd in the Southern District of New York Federal Court, requesting a jury trial. The plaintiff claims that Webull contributed 74% of Bakkt's encrypted service revenue between 2023 and 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 result in a 73% drop in overall revenue. The defendants also include former CEO Gavin Michael, current CEO Andrew Main, and interim CFO Karen Alexander of the company. Investors believe that Bakkt's failure to timely disclose the risk of termination of contracts with key clients violated US securities laws and resulted in significant losses.