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FTX Debtors Affiliate Alameda Research Files Lawsuit Against Grayscale and DCG

Cointime Official

Today, the FTX Debtors disclosed that Alameda Research Ltd., one of their debtor affiliates, has filed a lawsuit against Grayscale Investments, LLC ("Grayscale") , Grayscale's CEO Michael Sonnenshein, and its owners Digital Currency Group and Barry Silbert.

The FTX Debtors are requesting injunctive relief in order to unlock a value of $9 billion or greater for shareholders of the Grayscale Bitcoin and Ethereum Trusts, and to achieve an asset value of more than $250 million for the customers and creditors of the FTX Debtors.

As per the complaint, FTX Debtors stated that Grayscale has accumulated over $1.3 billion in exorbitant management fees in violation of the Trust agreements in the past two years. In addition, Grayscale has long been hidden behind contrived excuses to prevent shareholders from redeeming their shares.

FTX Debtors pointed out that 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." the statement noted.

"We will continue to use every tool we can to maximize recoveries for FTX customers and creditors. " John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, said in the statement.

"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." Ray added.

FTX Alameda Grayscale DCG
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