2 years ago
FTX said that its affiliate Alameda Research has sued Grayscale, arsenic indicated successful a press release published by the erstwhile institution connected March 6.
Alameda challenges fees, locked redemptions
In its property release, FTX alleged that Grayscale gained much than $1.3 cardinal from “exorbitant” absorption fees implicit 2 years. It besides complained that Grayscale has prevented shareholders from redeeming shares of its Bitcoin and Ethereum trusts.
FTX said that shares of those funds are present trading astatine a astir 50% discount. This means that each money is worthy astir fractional of the Bitcoin oregon Ethereum that backs it.
The institution said that if Grayscale reduced its fees, the shares owned by FTX debtors would beryllium worthy astatine slightest $550 million. This would correspond a 90% summation successful value.
FTX CEO John J. Ray III said that the extremity of the suit is to “maximize recoveries” and yet instrumentality funds to customers and creditors pursuing its November bankruptcy. The lawsuit against Grayscale could present much than $250 cardinal to creditors.
In its abstracted court filing, Alameda said that Grayscale held a full of $19 cardinal of assets successful the applicable trusts — seemingly representing the full size of those funds, not the magnitude deposited by Alameda Research. Alameda aims to unlock $9 cardinal successful value.
Other companies person sued Grayscale
Other companies person sued Grayscale for related reasons. Competing plus absorption steadfast Fir Tree Capital Management filed a akin suit connected Dec. 6, 2022. That suit likewise aimed to person Grayscale reverse the discount and licence redemptions.
Another company, Osprey Funds, sued Grayscale connected Jan. 30. That suit acrophobic Grayscale’s nonaccomplishment to person its Bitcoin spot to an exchange-traded money (ETF).
Valkyrie Investments, meanwhile, projected a rescue program for Grayscale’s Bitcoin Trust in December. It said that it could sponsor the money and connection redemptions. It besides expressed plans to motorboat an opportunistic money arsenic a complement to Grayscale’s offering.
On Feb. 15, Grayscale Bitcoin Trust (GBTC)’s discount fell to a year-to-date debased of -47.35%. Since then, the discount has risen to -44.56% — somewhat person to the baseline.
The station Alameda seeks to ‘maximize recoveries’ successful suing Grayscale implicit devalued BTC trust; alleges ‘exorbitant’ absorption fees appeared archetypal connected CryptoSlate.
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