Alameda Research Sues Grayscale and DCG for Suppressed Asset Value

Alameda Research Sues Grayscale and DCG for Suppressed Asset Value

Reprted Coindesk, Alameda Research, a sister company of FTX, has filed a lawsuit against crypto asset manager Grayscale Investments, CEO Michael Sonnenshein, and Digital Currency Group (DCG) to allow redemptions and reduce fees.

The lawsuit seeks injunctive relief to realize over $250 million in asset value for FTX Debtor's customers and creditors. The suit was filed in the Court of Chancery in Delaware, and Alameda's complaint alleges that Grayscale has extracted exorbitant management fees and allowed shares of Grayscale Bitcoin and Ethereum trusts to trade at roughly a 50% discount to their net asset value.

Alameda claims that if Grayscale reduces its fees and allows redemptions, FTX Debtor's shares would be worth at least $550 million, or roughly 90% more than their current value.

John J. Ray III, CEO, and chief restructuring officer of FTX Debtors, said,

"Our goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban."

Grayscale called the lawsuit "misguided" , adding that they have been transparent in their efforts to obtain regulatory approval to convert GBTC into an exchanged-traded fund.

Source

FTX

Grayscale

Policy and Regulation

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