Sam Bankman-Fried's personal hedge fund Alameda Research has filed a lawsuit against Grayscale and its parent company Digital Currency Group over $9 billion locked in Bitcoin Trust and Ethereum Trust.
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The firm's representatives said in a press release that in the past years Grayscale made over $1.3 billion in "exorbitant management fees" therefore violating the Trust agreements. Alameda's representatives noted that Grayscale for years was hiding behind "contrived excuses to prevent shareholders from redeeming their shares."
"Grayscale's actions have resulted in the Trusts' shares trading at approximately a 50% discount to Net Asset Value," the firm added.
Alameda Research claims that should Grayscale have reduced its fees and stopped "improperly preventing redemptions," then the FTX Debtors' shares would be "worth at least $550 million."
Crypto exchange FTX went bankrupt in November 2022 due to failed trading strategies, including commingling funds and using customer cash for doubtful deals with the help of Alameda. According to bankruptcy filings, Alameda owes over $370 million to the now-bankrupt Voyager Digital and $4.6 million to Amazon Web Services.
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