{"id":172016,"date":"2023-03-07T17:27:12","date_gmt":"2023-03-07T17:27:12","guid":{"rendered":"https:\/\/precoinnews.com\/?p=172016"},"modified":"2023-03-07T17:27:12","modified_gmt":"2023-03-07T17:27:12","slug":"ftx-linked-alameda-hits-grayscale-with-lawsuit-over-9-billion-in-locked-crypto-investments","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/ftx-linked-alameda-hits-grayscale-with-lawsuit-over-9-billion-in-locked-crypto-investments\/","title":{"rendered":"FTX-Linked Alameda Hits Grayscale With Lawsuit Over $9 Billion In Locked Crypto Investments"},"content":{"rendered":"<p>FTX trading affiliate Alameda Research has filed a new lawsuit against Grayscale Investments seeking to unlock investments it claims are being wrongly withheld from its customers.&nbsp;<\/p>\n<p>The suit was launched in the Court of Chancery in the State of Delaware, and it names CEO Michael Sonnenshein, and the parent company, Digital Currency Group, as defendants.<\/p>\n<h2><strong>Alameda Sues Grayscale<\/strong><\/h2>\n<p>Embattled crypto investment firm Alameda Research is suing crypto assets manager Grayscale.<\/p>\n<p>According to Alameda\u2019s complaint, FTX\u2019s new CEO John J. Ray III \u2014 who is steering the bankruptcy process of the defunct crypto exchange \u2014 said Grayscale \u201ccontrived excuses\u201d to prevent customers from redeeming their shares in what he described as a \u201cself-imposed redemption ban.\u201d\u00a0<\/p>\n<p>The lawsuit was lodged in a bid to \u201cunlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts [\u2026] and realize over a quarter billion dollars in asset value for the FTX Debtors&#8217; customers and creditors\u201d per the Monday statement.<\/p>\n<p>Sam Bankman-Fried, the disgraced founder and CEO of FTX, also co-founded Alameda in 2017. A day before FTX filed for bankruptcy in November 2022, it was uncovered that the Bahamas-based cryptocurrency exchange had lent customer funds to help shore up the trading firm.<\/p>\n<p>Since pleading not guilty to defrauding billions of dollars from his fallen crypto empire and paying a $250 million bond, Bankman-Fried has been living at his parent\u2019s Palo Alto mansion in California as he faces a multitude of criminal charges in the United States.<\/p>\n<p>Alameda alleged that Grayscale extracted over $1.3 billion in management fees in violation of trust agreements. As a result, the Trusts\u2019 shares trade \u201cat approximately a 50% discount to Net Asset Value.\u201d The plaintiff believes that if Grayscale had slashed those fees and allowed investors to withdraw their funds, FTX\u2019s shares would be worth $550 million \u2014 nearly 90% more than their current value.<\/p>\n<p>\u201cFTX customers and creditors will benefit from additional recoveries, along with other Grayscale Trust investors that are being harmed by Grayscale&#8217;s actions,\u201d Ray added.<\/p>\n<h2><strong>Grayscale Slams Alameda\u2019s \u2018Misguided\u2019 Lawsuit<\/strong><\/h2>\n<p>A Grayscale spokesperson called the Alameda suit \u201cmisguided\u201d, adding that the company \u201chas been transparent in our efforts to obtain regulatory approval to convert GBTC into an [exchange-traded fund] \u2014 an outcome that is undoubtedly the best long-term product structure for Grayscale\u2019s investors.&#8221;<\/p>\n<p>The news of Alameda\u2019s lawsuit against Grayscale comes after the failed crypto trading firm in late January sought to recover $445.8 million paid to bankrupt Voyager Digital prior to Alameda\u2019s own bankruptcy filing.<\/p>\n<p>Source: <a href=\"https:\/\/zycrypto.com\/ftx-linked-alameda-hits-grayscale-with-lawsuit-over-9-billion-in-locked-crypto-investments\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTX trading affiliate Alameda Research has filed<\/p>\n","protected":false},"author":3,"featured_media":172015,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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