Alameda Research sues Grayscale Investments in court 1

Alameda Research sues Grayscale Investments in court

Altcoin news, News

The sibling company of Bankrupt FTX, known as Alameda Research, has initiated legal action against Grayscale Investments, the CEO of Grayscale, Michael Sonnenshein, the owner of Grayscale, Digital Currency Group (DCG), and the CEO of DCG, Barry Silbert.

According to what was stated in the announcement, “the FTX Debtors are seeking injunctive relief to unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts (the “Trusts”) and realize over a quarter billion dollars in asset value for the FTX Debtors’ customers and creditors.”

According to Alameda Research, Grayscale has broken the Trust agreements by amassing about $1.3 billion in exorbitant management fees over the course of only the last two years.

The insolvent company said that for many years, Grayscale hid behind falsified excuses in order to prevent efforts by stockholders to redeem their shares of the company.

As a consequence of Grayscale’s actions, Alameda observed that the shares of the Trusts are being traded at a discount of about half of their Net Asset Value at the present time.

Alameda asserted that if Grayscale decreased its expenses and ceased unjustly obstructing redemptions, the value of the FTX Debtors’ shares would increase to at least $550 million.

The Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, John J. Ray III, made the following statement: “We will continue to employ every tool we can in order to maximize recovery for FTX customers and creditors.” Our objective is to lift the prohibition on self-dealing and inappropriate redemption imposed by Grayscale, which, in our opinion, is preventing value from being realized at the present time.

“FTX customers and creditors will benefit from extra recovery,” said Ray, who also emphasized that other Grayscale Trust investors who are being affected by Grayscale’s activities would also benefit from the additional recoveries.

In its statement from the previous month, FTX expressed its desire to recoup all of its political contributions by February 28, 2023. The FTX debtors were investigating the political contributions of $93 million that were made between March 2020 and November 2022.

In the meanwhile, throughout the month of January, the lending arm of DCG known as Genesis Global filed for bankruptcy. Cameron Winklevoss, co-founder of Gemini, subsequently made threats to sue DCG CEO Barry Silbert for allegedly scamming more than 340,000 Earn members.

Compiled by Coinbold

BTC, Digital Currency Group, ETH, FTX, Genesis, Grayscale

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