FTX-Linked Alameda Hits Grayscale With Lawsuit Over $9 Billion In Locked Crypto Investments ⋆ ZyCrypto

FTX Linked Alameda Hits Grayscale With Lawsuit Over 9 Billion In Locked Crypto Investments


FTX-Linked Alameda Hits Grayscale With Lawsuit Over $9 Billion In Locked Crypto Investments




FTX buying and selling affiliate Alameda Analysis has filed a brand new lawsuit towards Grayscale Investments looking for to unlock investments it claims are being wrongly withheld from its prospects. 

The go well with was launched within the Court docket of Chancery within the State of Delaware, and it names CEO Michael Sonnenshein, and the mother or father firm, Digital Foreign money Group, as defendants.

Alameda Sues Grayscale

Embattled crypto funding agency Alameda Analysis is suing crypto property supervisor Grayscale.

In accordance with Alameda’s criticism, FTX’s new CEO John J. Ray III — who’s steering the chapter means of the defunct crypto trade — mentioned Grayscale “contrived excuses” to forestall prospects from redeeming their shares in what he described as a “self-imposed redemption ban.” 

The lawsuit was lodged in a bid to “unlock $9 billion or extra in worth for shareholders of the Grayscale Bitcoin and Ethereum Trusts […] and understand over 1 / 4 billion {dollars} in asset worth for the FTX Debtors’ prospects and collectors” per the Monday assertion.




Sam Bankman-Fried, the disgraced founder and CEO of FTX, additionally co-founded Alameda in 2017. A day earlier than FTX filed for chapter in November 2022, it was uncovered that the Bahamas-based cryptocurrency trade had lent buyer funds to assist shore up the buying and selling agency.

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Since pleading not responsible to defrauding billions of {dollars} from his fallen crypto empire and paying a $250 million bond, Bankman-Fried has been residing at his mother or father’s Palo Alto mansion in California as he faces a mess of prison fees in america.

Alameda alleged that Grayscale extracted over $1.3 billion in administration charges in violation of belief agreements. Because of this, the Trusts’ shares commerce “at roughly a 50% low cost to Web Asset Worth.” The plaintiff believes that if Grayscale had slashed these charges and allowed traders to withdraw their funds, FTX’s shares can be value $550 million — almost 90% greater than their present worth.

“FTX prospects and collectors will profit from extra recoveries, together with different Grayscale Belief traders which can be being harmed by Grayscale’s actions,” Ray added.

Grayscale Slams Alameda’s ‘Misguided’ Lawsuit

A Grayscale spokesperson known as the Alameda go well with “misguided”, including that the corporate “has been clear in our efforts to acquire regulatory approval to transform GBTC into an [exchange-traded fund] — an final result that’s undoubtedly the very best long-term product construction for Grayscale’s traders.”

The information of Alameda’s lawsuit towards Grayscale comes after the failed crypto buying and selling agency in late January sought to get well $445.8 million paid to bankrupt Voyager Digital previous to Alameda’s personal chapter submitting.