FTX’s former trading arm, Alameda Research, has gone bankrupt and will reportedly no longer pursue a lawsuit against crypto giant Grayscale.
Last March, debtors of the bankrupt digital asset exchange FTX filed a lawsuit against Grayscale in Delaware.
The lawsuit alleged that Grayscale received more than $1.3 billion in excessive management fees in violation of fiduciary agreements. Additionally, Alameda claimed that Grayscale’s actions reduced the value of shares in its Bitcoin (BTC) and Ethereum (ETH) Trusts by up to 50% of their respective asset values.
At the time, FTX sought injunctive relief to release more than $9 billion in value for shareholders and recover more than a quarter of a billion dollars for FTX Debtors’ customers and creditors. FTX CEO John J. Ray III said the goal was to maximize asset recovery for the exchange’s stakeholders.
“Our goal is to unlock value that we believe is currently being suppressed by Grayscale’s ban on self-dealing and improper redemptions. FTX customers and creditors will benefit from additional recoveries, along with other Grayscale Trust investors harmed by Grayscale’s actions.”
Now, according to ReutersAlameda drops the lawsuit.
Says a Grayscale spokesperson:
“Alameda’s voluntary resignation underlines Grayscale’s position that this legal action was completely without merit.”
FTX went bankrupt in November 2022.
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