FTX’s Alameda Research Files Lawsuit Against Grayscale

FTX News: What comes as a new twist in the ongoing FTX bankruptcy case, the FTX conglomerate announced today that one of their debtor affiliates, Alameda Research, has filed a lawsuit against Grayscale Investments in the Delaware State Court of Chancery. In addition, the FTX Debtors filed claims against Michael Sonnenshein, the Chief Executive Officer of Grayscale, as well as against the Digital Currency Group (DCG) and Barry Silbert, the owners of Grayscale.

Alameda Research Takes Legal Action

The FTX Debtors are requesting injunctive action in order to release $9 billion or more in value for stockholders of the Grayscale Crypto Trusts and to realize over $250 million in asset value for the FTX Debtors’ customers and creditors.

Read More: Check Out The Top 10 DeFi Lending Platforms Of 2023

According to the lawsuit filed by Alameda, Grayscale has allegedly charged unreasonable management fees for operating and administering the Grayscale Bitcoin and Ethereum Trusts. Moreover, it has also accused Grayscale of allowing its shares to trade at a discount of almost half of its net asset value.

Multiple Allegations Against Grayscale

The complaint further states that the FTX debtors’ shares would be worth at least $550 million, which is approximately 90% higher than their current value, if Grayscale lowered its fees and allowed redemptions. While speaking on the new development, the acting CEO and Chief Restructuring Officer at FTX , John J. Ray III, was quoted as saying:

We will continue to use every tool we can to maximize recoveries for FTX customers and creditors. Our goal is to unlock value that we believe is currently being suppressed by Grayscale’s self-dealing and improper redemption ban.

“FTX customers and creditors will benefit from additional recoveries, along with other Grayscale Trust investors that are being harmed by Grayscale’s actions”, he further added.

The complaint went on to allege that Grayscale, for many years, concealed itself behind a variety of fabricated explanations in order to forestall the redemption of shareholders’ shares.

Also Read: Breaking: U.S. SEC Continues Crypto Crack Down; Charges BKCoin For Running “Ponzi-like Scheme”

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.