Alameda seeks to ‘maximize recoveries’ in suing Grayscale over devalued BTC trust; alleges ‘exorbitant’ management fees
FTX said its affiliate, Alameda Research, sued Grayscale. press release It was issued by the old company on March 6.
Alameda Disputes Fees, Redemption Locked
In a press release, FTX claimed that Grayscale had earned over $1.3 billion in “outrageous” administrative costs over two years. He also complained that Grayscale was preventing shareholders from redeeming shares in the Bitcoin and Ethereum trusts.
Shares in these funds are currently trading at a discount of about 50%, according to FTX. This means that each fund is worth about half the Bitcoin or Ethereum backing it.
The company said shares owned by FTX debtors could be worth at least $550 million if Grayscale lowers its fees. This represents a 90% increase in value.
FTX CEO John J. Ray III said the lawsuit aims to “maximize collections” and ultimately return funds to customers and creditors following bankruptcy in November. A lawsuit against Grayscale could bring creditors more than $250 million from him.
in that separate Court submission, Alameda said Grayscale holds assets totaling $19 billion in related trusts. This appears to represent the total size of these funds rather than the amount deposited by Alameda Research, which aims to unlock $9 billion in value.
Other companies are suing Grayscale
Other companies are suing Grayscale for related reasons. Competing asset management firm Fir Tree Capital Management filed a similar lawsuit on December 6, 2022.
Another company, Osprey Funds, sued Grayscale on January 30. The lawsuit concerned Grayscale’s failure to convert a Bitcoin trust into an exchange-traded fund (ETF).
Meanwhile, Valkyrie Investments proposed a rescue plan for Grayscale’s Bitcoin Trust in December. He said he could sponsor the fund and offer to redeem it. The company also announced plans to launch an opportunistic fund to complement Grayscale’s offering.
On February 15, the Grayscale Bitcoin Trust (GBTC) discount rate fell to a year-to-date low of -47.35%. Since then, the discount rate has increased to -44.56%, slightly closer to the baseline.
