FTX’s cryptocurrency trading arm Alameda Research has filed a lawsuit against Grayscale Investments to recover losses from its investment in Grayscale's Bitcoin (BTC) Trust.
The FTX debtors are seeking a court order to unlock more than $9bn in value for shareholders of the Grayscale BTC and Ethereum Trusts and release more than $250m in asset value for FTX debtors' customers and creditors.
The complaint also alleged Grayscale had extracted more than $1.3bn in “exorbitant management fees” over the last two years, and hidden behind “contrived excuses to prevent shareholders from redeeming their shares”.
According to Alameda’s filing, if the firm reduced its fees and stopped “improperly preventing redemptions”, the FTX debtors’ shares “would be worth at least $550m”, around 90% more than the current value of the FTX debtors' shares today.
“We will continue to use every tool we can to maximize recoveries for FTX customers and creditors. Our goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban”, said FTX chief executive John J. Ray III.
“FTX customers and creditors will benefit from additional recoveries, along with other Grayscale Trust investors that are being harmed by Grayscale‘s actions.”
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