Alameda Sues Grayscale and DCG to Allow Redemptions, Reduce Fees

FTX sister company Alameda Research has filed a lawsuit against crypto asset manager Grayscale Investments seeking injunctive relief to realize what it claims is over $250 million in asset value for the FTX Debtor’s customers and creditors, according to a press release.

The suit was filed in the Court of Chancery in the State of Delaware and also asserted claims against Grayscale CEO Michael Sonnenshein and Grayscale’s owners, Digital Currency Group (DCG) and its CEO, Barry Silbert.

DCG is also the owner of Coindesk.

According to Alameda’s complaint, Grayscale has extracted exorbitant management fees for its management of the Grayscale Bitcoin and Ethereum Trusts, and has allowed those Trusts’ shares to trade at roughly a 50% discount to their net asset value.

The complaint asserts that if Grayscale reduced its fees and allowed redemptions, FTX Debtors shares would be worth at least $550 million, or roughly 90% more than their current value.

"We will continue to use every tool we can to maximize recoveries for FTX customers and creditors,” said John J. Ray III, CEO and Chief Restructuring Officer of the FTX Debtors, in a statement. “Our goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban.”

Read more: GBTC Discount Narrows to 42% Ahead of Grayscale’s ETF Hearing Tuesday