Debtors of the bankrupt digital asset exchange FTX have filed a lawsuit against crypto giant Grayscale in Delaware.
Alameda Research, a “debtor affiliate” and the disgraced sister company of FTX, sued Grayscale in the Delaware Court of Chancery, claiming the crypto asset manager extracted more than $1.3 billion “in exorbitant management fees in violation of the trust agreements,” according to a new press release
Alameda also claims Grayscale has taken actions that have reduced the value of shares in its Bitcoin () and Ethereum () Trusts to 50% of the value of those respective assets, and that the firm has “hidden behind contrived excuses” in order to keep shareholders from redeeming shares.
Says FTX,
“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.”
FTX CEO John J. Ray III, who replaced disgraced founder Sam Bankman-Fried, says the company plans to use any tool it can to maximize asset recovery for the exchange’s customers and debtors.
“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.”
