2 years ago
The FTX Debtors privation to “unlock” $9 cardinal successful stock worth and absorption fees that they quality done the Delaware Court of Chancery.
Own this portion of past
Collect this nonfiction arsenic an NFT
Alameda Research has filed suit against Grayscale Investments successful the Court of Chancery successful the State of Delaware, it announced March 6. It besides made claims against Grayscale CEO Michael Sonnenshein, Grayscale proprietor Digital Currency Group (DCG) and the group’s CEO Barry Silbert.
Alameda Research is an affiliate debtor of FTX, which filed for bankruptcy successful November. The suit seeks to “unlock $9 cardinal oregon much successful worth for shareholders of the Grayscale Bitcoin and Ethereum Trusts […] and recognize implicit a 4th cardinal dollars successful plus worth for the FTX Debtors' customers and creditors,” according to a statement.
Related: Digital Currency Group's Genesis implosion: What comes next?
The plaintiff claimed Grayscale charged implicit $1.3 cardinal successful absorption fees successful usurpation of spot agreements. In addition, it “contrived excuses” to forestall shareholders from redeeming their shares successful what the connection described arsenic a “self-imposed redemption ban.” As a result, the connection continued, the Trusts' shares commercialized “at astir a 50% discount to Net Asset Value.” Therefore, the plaintiff claimed:
“If Grayscale reduced its fees and stopped improperly preventing redemptions, the FTX Debtors' shares would beryllium worthy astatine slightest $550 million, astir 90% much than the existent worth of the FTX Debtors' shares today.”According to The Financial Times, Alameda owns 22 cardinal shares successful Grayscale’s Bitcoin (BTC) Trust and 6 cardinal shares successful its Ethereum (ETH) Trust.
The Court of Chancery describes itself arsenic “a forum for the determination of disputes involving the interior affairs of […] Delaware corporations.” Fir Tree Capital Management filed a suit successful the aforesaid court seeking akin remedies successful December.
1/ FTX CEO John Ray enters the ring.
FTX filed a suit against Grayscale and its genitor company.
This is simply a surprise.
John Ray is turning implicit each stone - including ineligible challenges to Grayscale's exemplary - to maximize recoveries for FTX creditors.https://t.co/x1xl89B0cP
DCG’s lending branch, Genesis Global, filed for bankruptcy connected Jan. 19. Grayscale has sued the United States Securities and Exchange Commission implicit the latter’s determination to contradict Grayscale’s exertion to make a Bitcoin spot exchange. Oral arguments successful that lawsuit volition beryllium heard March 7 successful the District of Columbia Court of Appeals.
DCG did not instantly respond to an enquiry from Cointelegraph.
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