Alameda Research, the cryptocurrency trading firm affiliated to bankrupt
digital exchange FTX, has filed a lawsuit against crypto asset manager
Grayscale, FTX said in a statement. The once-leading crypto exchange alongside
other affiliated debtors are seeking to “realize over a quarter billion dollars
in asset value for FTX Debtors’ customers and creditors.”
They are also asking for an injunctive relief to unlock $9 billion or
more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts. These
trust funds track the price of Bitcoin and Ether.
The development comes a month after the Digital Currency Group (DCG), a digital asset conglomerate and the parent company of Grayscale, started selling the crypto asset manager’s holdings in several investment vehicles at a steep discount to raise capital for its bankrupt lending business.
In the statement released on Monday, FTX alleged that Grayscale over the
last two years has charged over $1.3 billion in exorbitant management fees,
thereby contravening the agreement of its trust funds. The struggling
cryptocurrency exchange also alleged that Grayscale for years has been
preventing shareholders from redeeming their shares by making “contrived
excuses.” As a result of these developments, FTX noted in the statement, the
Grayscale Bitcoin and Ethereum Trusts’ shares now trades approximately 50%
lower compared to its daily…
