{"id":18424,"date":"2023-03-07T15:06:23","date_gmt":"2023-03-07T15:06:23","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/alameda-research-sues-grayscale-investments-seeking-to-unlock-billions-in-value-for-shareholders-bitcoin-news\/"},"modified":"2023-03-07T15:06:23","modified_gmt":"2023-03-07T15:06:23","slug":"alameda-research-sues-grayscale-investments-seeking-to-unlock-billions-in-value-for-shareholders-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/alameda-research-sues-grayscale-investments-seeking-to-unlock-billions-in-value-for-shareholders-bitcoin-news\/","title":{"rendered":"Alameda Research Sues Grayscale Investments Seeking to Unlock Billions in Value for Shareholders \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

FTX Debtors and affiliate Alameda Research Ltd. have filed a lawsuit against Grayscale Investments, seeking injunctive relief to unlock $9 billion in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts. The debtors allege that \u201cGrayscale has extracted over $1.3 billion in exorbitant management fees in violation of the trust agreements.\u201d<\/strong><\/p>\n

FTX Debtors Accuse Grayscale of Exorbitant Management Fees and Breach of Trust Agreements<\/h2>\n

In a press release<\/a> issued March 6, 2023, FTX debtors and Alameda Research<\/a>, the company\u2019s now-defunct quantitative trading firm, announced that Alameda is suing digital currency fund manager Grayscale Investments. Alameda seeks injunctive relief to allow redemptions and reduce fees associated with the Grayscale Bitcoin and Ethereum Trusts. The debtors allege that Grayscale and its management team continue to \u201cbreach trust agreements and fiduciary duties.\u201d<\/p>\n

Alameda also argues that Grayscale\u2019s self-imposed redemption ban prevents the \u201crealization of approximately $9 billion of value.\u201d The firm\u2019s CEO and chief restructuring officer, John J. Ray III<\/a>, issued a statement regarding the lawsuit against Grayscale, stating: \u201cWe will continue to use every tool we can to maximize recoveries for FTX customers and creditors.\u201d The FTX debtors restructuring officer added:<\/p>\n

\n

Our goal is to unlock value that we believe is currently being suppressed by Grayscale\u2019s 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\u2019s actions.<\/p>\n<\/blockquote>\n

The lawsuit against Grayscale follows Alameda\u2019s lawsuit<\/a> against Voyager Digital at the end of January 2023. The complaint alleged that Voyager received preferential transfers of property from Alameda Research, and the firm sought to recover approximately $445.8 million from the bankrupt entity. Voyager agreed to set aside the $445 million to pay Alameda, and both parties agreed to participate in nonbinding mediation.<\/p>\n

The press release from FTX debtors alleges that for years, Grayscale has \u201chidden behind contrived excuses\u201d to prevent shareholders from redeeming their shares. It also noted that the Bitcoin Trust (GBTC) has been trading 50% below net asset value (NAV). GBTC statistics on Tuesday show a current 42.11% discount<\/a> to NAV.<\/p>\n

\u201cIf Grayscale reduced its fees and stopped improperly preventing redemptions, the FTX debtors\u2019 shares would be worth at least $550 million, approximately 90% more than the current value of the FTX debtors\u2019 shares today,\u201d the complaint against Grayscale concludes.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
Alameda Research<\/a>, Bankruptcy<\/a>, Bitcoin<\/a>, contrived excuses<\/a>, creditors<\/a>, Cryptocurrency<\/a>, Digital Currency<\/a>, Discounts<\/a>, Ethereum<\/a>, Fees<\/a>, fiduciary duties<\/a>, ftx<\/a>, FTX customers<\/a>, Grayscale Investments<\/a>, improper redemption<\/a>, injunctive relief<\/a>, Lawsuit<\/a>, management fees<\/a>, NAV<\/a>, Net asset value<\/a>, non-binding mediation<\/a>, preferential transfers<\/a>, property<\/a>, recovery<\/a>, redemption ban<\/a>, self-dealing<\/a>, Shareholders<\/a>, Trusts<\/a>, Value<\/a>, Voyager Digital<\/a><\/div>\n<\/div>\n

What do you think will be the outcome of the lawsuit against Grayscale Investments? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n