According to a statement made on March 6, Alameda Research has filed a lawsuit against Grayscale Investments in the Delaware Court of Chancery. The CEO of Grayscale, Michael Sonnenshein, the owner of Digital Currency Group (DCG), and its CEO, Barry Silbert, were also named in the bankruptcy lawsuit filed by the defunct cryptocurrency trading company.
FTX, which filed for bankruptcy in November, has Alameda Research as a related debtor. The lawsuit, according to a statement, aims to recover at least $9 billion in value for Grayscale Bitcoin and Ethereum Trust stockholders and more than $2 billion in asset value for the FTX Debtors’ clients and creditors.
According to the complaint, Grayscale violated trust agreements by charging more than $1.3 billion in management fees. Moreover, it made up justifications to prohibit stockholders from selling their shares in what seemed to be a self-imposed redemption ban, according to the statement. The statement suggested that as a result, the Trusts’ shares trade at almost a 50% discount to Net Asset Value.
The complainant said that the FTX Debtors’ shares would be worth at least $550 million, or almost 90% more than their present value, if Grayscale decreased its fees and stopped unfairly impeding redemptions.
The Financial Times reports that Alameda has 6 million shares of Grayscale’s Ether Trust and 22 million shares of its Bitcoin $22,38 Trust.
According to its own self-description, the Court of Chancery serves as a venue for the resolution of issues affecting the internal affairs of Delaware corporations. In December, Fir Tree Capital Management filed a lawsuit in the same court, requesting a similar set of relief.
The Court of Chancery, according to its self-description, handles internal affairs issues for Delaware corporations. In December, Fir Tree Capital Management filed a lawsuit in the same court seeking comparable relief.
On the 19th of January, Genesis Global, a DCG division responsible for financing, filed for insolvency. Grayscale’s application for a Bitcoin spot market was denied by the US Securities and Exchange Commission, prompting the company to sue the agency. The District of Columbia Court of Appeals will hear oral arguments on March 7th. Grayscale’s representative called the lawsuit “misguided,” according to a statement given to the report.