The FTX Group announced on Monday, March 6th, that it is suing Michael Sonnenshein, the CEO of Grayscale Investments, as well as Barry Silbert and his Digital Currency Group. The release states that FTX's Alameda Research is attempting to recover at least $9 billion that Grayscale has locked up.

Grayscale has violated the Trust agreements by collecting over $1.3 billion in extortionate management fees alone in the last two years.

For years, Grayscale has sheltered behind fabricated justifications to thwart shareholders' attempts to redeem their shares.

The Trusts' shares are currently selling at about a 50% discount to Net Asset Value as a result of Grayscale's activities.

The FTX Debtors' shares would be worth at least $550 million, or almost 90% more than their present value, if Grayscale cut its costs and stopped unjustly impeding redemptions.

FTX debtors are asserting that Grayscale is in violation of Trust Agreements and Fiduciary Responsibility. Also, they want the outrageous fees that, according to a press release, have already made Grayscale $1.3 billion over the last two years reduced. Moreover, John J. Ray's team asserts that the Grayscale Bitcoin Trust's substantial trading disadvantage is the result of the DCG Subsidiary's actions.

Grayscale has allegedly been hiding for years behind fabricated justifications to stop stockholders from redeeming their shares, according to the complaint. Read from the announcement, the current CEO of FTX, John J. Ray III, said that his team;

"continues to use every tool we can to maximize recoveries for FTX customers and creditors, goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban."

He said that the decision will benefit Grayscale's investors as well as FTX's debtors.

#ftxcollapse #sbf #alamedaresearch #crypto2023 #scams

FTX’s sister company Alameda Research has filed a lawsuit against crypto asset manager Grayscale Investments seeking an injunction to realize what it says is more than $250 million in profits for FTX’s clients and shareholders. according to the newspaper. The lawsuit was filed in the Delaware Court of Chancery. It also addresses allegations against Grayscale CEO Michael Sonnenshein and Grayscale Digital Currency Group (DCG) owner and CEO Barry Silbert.

According to Alameda’s complaint, Grayscale charged a large management fee for its management of the Grayscale Bitcoin and Ethereum trusts, and allowed the shares of these trusts to be traded at a discount of around 50% to their net worth. .

The lawsuit says that if Grayscale lowers its debt and is allowed to buy back, FTX Debtors’ stock will be worth at least $550 million, or about 90% more than its current value. “We will continue to use all tools at our disposal to recover FTX’s customers and creditors,” John J. Ray III, CEO and Director of Receivables Restructuring at FTX, said in a statement. “Our goal is to unlock the benefits we believe Grayscale’s ban restricts private transactions and improper bailouts.”

In an email to CoinDesk, a spokesperson for Grayscale called the decision “unfair,” adding that “Grayscale has been clear in our efforts to obtain regulatory approval to convert GBTC into [ exchange rate funds] – the result of which is the best. long-term product strategy for Grayscale investors.”

Grayscale is set to appeal the SEC’s decision to deny Grayscale’s request to convert GBTC to an ETF at a hearing Tuesday before the Washington, D.C., Court of Appeals.

#alamedaresearch #crypto2023 #BinanceFeed #buildtogether