Alameda Research has filed a lawsuit against Grayscale Investments in the Delaware State Court of Chancery, it announced on March 6. He also filed lawsuits against the CEO of Grayscale, Michael Sonnenshein, Grayscale’s owner, D.Digital Currency Group (DCG) and the CEO of the group, Barry Silbert.
Alameda Research is a debtor affiliate of FTX, which filed for bankruptcy in November. The lawsuit seeks to “unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum trusts.” […] and realize more than a quarter of a trillion dollars in asset value for clients and creditors of FTX debtors,” according to a statement.
The plaintiff claimed that Grayscale collected more than $1.3 billion in management fees, in violation of trust agreements. In addition, it “made excuses” to prevent shareholders from trading their shares in what the statement described as a “self-imposed swap ban.” As a result, the statement continued, the shares of the trusts are trading “at an approximate discount of 50% on the Net Asset Value.” Therefore, the plaintiff claimed:
“If Grayscale were to reduce its fees and stop improperly preventing swaps, FTX Debtor shares would be worth at least $550 million, approximately 90% more than the current value of FTX Debtor shares today.”
According to The Financial Times, Alameda owns 22 million shares in Grayscale’s Bitcoin (BTC) Trust and 6 million shares in its Ethereum (ETH) Trust.
The Court of Chancery describes itself as “a forum for the determination of disputes relating to the internal affairs of […] Delaware corporations. Fir Tree Capital Management filed a lawsuit in the same court seeking similar remedies in December.
1/ FTX CEO John Ray enters the ring.
FTX filed a lawsuit against Grayscale and its parent company.
This is a surprise.
John Ray is turning over every rock – including legal challenges to Grayscale’s model – to maximize recoveries for FTX creditors.https://t.co/x1xl89B0cP
— Ram Ahluwalia, crypto CFA (@ramahluwalia) March 6, 2023
FTX CEO John Ray steps into the ring.i
FTX filed a lawsuit against Grayscale and its parent company.
This is a surprise.
John Ray is doing everything possible – including legal challenges to Grayscale’s model – to maximize the recovery of FTX’s creditors.
DCG’s lending arm, Genesis Global, filed for bankruptcy on January 19. Grayscale has sued the US Securities and Exchange Commission over the latter’s decision to deny Grayscale’s request to create a spot Bitcoin exchange. Oral arguments in that case will be heard on March 7 in the Court of Appeals for the District of Columbia.
DCG did not immediately respond to a query from Cointelegraph.
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