On March 6th, FTX announced that one of its affiliate debtors, Alameda Research Ltd., filed a lawsuit against Grayscale Investments in the Court of Chancery in the State of Delaware. The lawsuit also targets Grayscale’s CEO, Michael Sonnenshein, its parent company, Digital Currency Group, and its co-founder and CEO, Barry Silbert.
The lawsuit seeks to unlock $9 billion or more in value locked in Grayscale’s Bitcoin and Ethereum Trusts, realizing over a quarter billion in assets for FTX debtors, customers and creditors.
The complaint adds:
In the past two years alone, Grayscale has extracted over $1.3 billion in exorbitant management fees in violation of the Trust agreements. Grayscale has for years hidden behind contrived excuses to prevent shareholders from redeeming their shares.
Grayscale’s actions have resulted in the Trusts’ shares trading at approximately a 50% discount to Net Asset Value. If Grayscale reduced its fees and stopped improperly preventing redemptions, the FTX Debtors’ shares would be worth at least $550 million, approximately 90% more than the current value of the FTX Debtors’ shares today.
John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors added:
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.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.