Alameda Research announced on March 6 that it has filed a lawsuit against Grayscale Investments in the Delaware Chancery Court. The bankrupt cryptocurrency exchange is also targeting Grayscale CEO Michael Sonnenshein, Grayscale owner Digital Currency Group (DCG), and the group's CEO Barry Silbert.
Alameda Research is an associated debtor of FTX, which filed for bankruptcy in November. According to a statement, the lawsuit seeks to “unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trust and realize over $250 million in assets for clients and creditors of FTX debtors value,". The plaintiffs allege that Grayscale collected more than $1.3 billion in management fees in violation of the trust agreement. In addition, it "fabricated excuses" to prevent shareholders from redeeming their shares, which the statement called a "self-imposed redemption ban." As a result, the trust's shares traded "at an approximate 50% discount to net asset value," the statement continued. Therefore, the plaintiff contends that: “If Grayscale lowered its fees and stopped improperly blocking redemptions, FTX Debtors’ stock would be worth at least $550 million, approximately 90% more than FTX Debtors’ current stock value.”
Alameda owns 22 million Bitcoin shares in Grayscale, FT reports Bitcoin, Trust and 6 million ETH shares believe. The Chancery Court describes itself as “a forum for the resolution of disputes involving the internal affairs of Delaware corporations.” Fir Tree Capital Management filed a lawsuit in the same court in December seeking a similar remedy.
Genesis Global, the lending arm of DCG, filed for bankruptcy protection on Jan. 19. Grayscale has filed a lawsuit against the SEC over its decision to reject Grayscale’s decision to create a bitcoin spot exchange. Oral arguments in the case will begin March 7 in the District of Columbia Court of Appeals.
