The FTX hedge fund accused Grayscale of a “self-imposed redemption ban,” but funds are leaving quite actively now.
Alameda Research has dropped its lawsuit against Grayscale Investments. The suit was filed in March 2023 and sought injunctive relief against practices it claimed were suppressing the value of FTX debtors’ assets.
Alameda Research’s suit sought a court order against the charging of management fees in violation of trust agreements. Those fees had amounted to over $1.3 billion at the time the suit was filed. In addition, the suit claimed Grayscale has a “self-imposed redemption ban” that discourages shareholders from redeeming shares in the Grayscale Bitcoin (GBTC) and Ethereum Trusts.
“If Grayscale reduced its fees and stopped improperly preventing redemptions, the FTX Debtors’ shares would be worth at least $550 million, approximately 90% more than the current value of the FTX Debtors’ shares today,” FTX said in a statement at the time of filing.
