Alameda Research Sues Grayscale Investments Seeking to Unlock Billions in Value for Shareholders – FTX’s debtors and Alameda Research, the company’s former quantitative trading firm, have announced through a press release on March 6, 2023 that they are suing Grayscale Investments, a digital currency fund manager. Alameda is seeking injunctive relief to enable redemptions and decrease fees associated with the Grayscale Bitcoin and Ethereum Trusts.
The debtors have accused Grayscale and its management team of continuously violating trust agreements and fiduciary duties. Alameda also argues that Grayscale’s self-imposed redemption ban prevents the “realization of approximately $9 billion of value.”
People Also Read: SEC Files Emergency Action Against Bkcoin in $100 Million Crypto Fraud Scheme
The firm’s CEO and chief restructuring officer, John J. Ray III, issued a statement regarding the lawsuit against Grayscale, stating: “We will continue to use every tool we can to maximize recoveries for FTX customers and creditors.”
The FTX debtors restructuring officer added: “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.”
In January 2023, Alameda Research filed a lawsuit against Voyager Digital, accusing the company of receiving preferential property transfers and seeking to recover around $445.8 million from the bankrupt entity. As a result, Voyager has agreed to reserve the $445 million for Alameda’s payment, and both sides have agreed to participate in nonbinding mediation.
Following this, the lawsuit against Grayscale was initiated by Alameda. FTX’s debtors stated in the press release that Grayscale has been using “contrived excuses” for years to prevent shareholders from redeeming their shares. The press release also highlighted that the Bitcoin Trust (GBTC) has been trading at a 50% discount to its net asset value (NAV).
People Also Read: India’s Central Bank Digital Currency to Act as Alternative to Cryptocurrency
As of Tuesday, GBTC statistics reveal that it is currently being traded at a 42.11% discount to NAV. “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 complaint against Grayscale concludes.
