• March 29, 2024

Satoshihodler.com

All the latest cryptocurrency news

FTX Files Lawsuit Against Grayscale Investments

Reading time: < 1 minute

FTX has filed a lawsuit against Grayscale Investments, its CEO Michael Sonenshine, and the founder of its parent company, Digital Currency Group, Barry Silbert.

The complaint alleges that Grayscale has wrongfully received more than $1.3 billion in “inflated management fees” over the past two years, and that the firm’s “spurious excuses” for the prohibition of redemption of shares in trusts resulted in a 50% discount to the net asset value (NAV).

The company is requesting an injunction for Grayscale to unlock $9 billion in equity value in Bitcoin and Ethereum trusts, and FTX CEO John Ray III has stated that the team will do “whatever it takes” to maximize reimbursement to the exchange’s customers.

According to the statement:

“If Grayscale lowers its fees and stops improperly preventing redemptions, FTX lender shares would be worth at least $550 million, approximately 90% more than their current value.”