Datavault AI can't withdraw $65M in bitcoin from Biconomy, will restate
Datavault AI says about 817.6 BTC is stuck at exchange Biconomy, more than a year of its accounts can't be relied on, and it is reviewing going-concern status.
BITCOINEXCHANGESNEWS
Daniel Hartley
10/29/20262 min read
Datavault AI has told investors that more than a year of its financial statements can no longer be relied on after it failed to withdraw bitcoin held at exchange Biconomy, according to an 8-K filed on Oct. 26. About 817.6 BTC, worth roughly $65 million at prices near $80,000, remains on the platform, Gizmodo reported on Oct. 29.
The coins come from a September 2025 deal in which Scilex Holding agreed to buy 15 million Datavault shares plus a pre-funded warrant for more than 263.9 million shares for $150 million, payable in about 1,328.43 BTC, The Block reported. The bitcoin was credited to a Datavault account at Biconomy Pte. Ltd. through an off-chain transfer. Between September 2025 and January 2026, Datavault sold 491.431 BTC back to Scilex for about $40.5 million.
Datavault asked to move the remaining balance to an external account in June 2026. As of the filing the withdrawal had not gone through, and the company gave no reason.
Restatement and going-concern review
The company concluded that the bitcoin did not qualify as its own digital asset and will instead record it as a subscription receivable from Scilex, which reduces stockholders' equity. Restated total assets will be $92.2 million lower as of Dec. 31, 2025 and $49 million lower as of June 30, 2026. Management is reassessing the going-concern evaluation, because it had counted the bitcoin as a source of liquidity.
The shares fell 49.6% to about $0.067 on Oct. 27 on roughly eight times the previous day's volume, then rebounded about 31% on Oct. 28 to around $0.088 without a disclosed catalyst, according to Unchained data cited by Gizmodo.
Questions also surround the custodian. Biconomy's help page says it is licensed by Malaysia's Securities Commission, but the regulator's list updated on July 20, 2026 does not include it. A binding term sheet signed in June for Scilex to buy 837 BTC for $50 million has not led to a definitive agreement. Biconomy did not answer requests for comment, and The Block reported no response from Datavault or Scilex.
Source: Datavault AI SEC filing, The Block, Gizmodo