FTX Debtors Sue Grayscale Investments And Its Executives

2023-3-7 01:00

Grayscale’s CEO as well as owners Digital Currency Group and Barry Silbert allegedly violated trust agreements, according to the lawsuit.

Alameda Research Ltd., the hedge fund belonging to disgraced ex-billionaire Sam Bankman-Fried, is suing Grayscale Investments, LLC, its CEO, Michael Sonnenshein, and its owners, Digital Currency Group and Barry Silbert as a debtor affiliate of FTX.

According to a press release announcing the lawsuit, “FTX Debtors are seeking injunctive relief to unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts (the "Trusts") and realize over a quarter billion dollars in asset value for the FTX Debtors' customers and creditors.”

The release describes how Grayscale has “extracted” more than $1.3 billion in management fees while violating trust agreements. In addition, the complaint alleges that “Grayscale has for years hidden behind contrived excuses to prevent shareholders from redeeming their shares,” with the firm's actions having resulted in shares trading at 50% discount to Net Asset Value.

“If Grayscale reduced its fees and stopped improperly preventing redemptions,” the lawsuit alleges, “the FTX Debtors' shares would be worth at least $550 million, approximately 90% more than the current value of the FTX Debtors' shares today.”

Grayscale has faced mounting pressure to make structural changes to the trust, including Valkyrie Investments seeking to take the reins of the trust. Grayscale CEO Michael Sonnenshein also stated in a letter to investors that should the Grayscale Bitcoin Trust fail to convert into an exchange-traded fund (ETF), potential moves could include a tender offer of 20% of the $10.7 billion trust.

As for FTX, which went bankrupt in November 2022, the quest to reacquire funds that could potentially rectify creditors goes on.

"We will continue to use every tool we can to maximize recoveries for FTX customers and creditors,” stated John J. Ray III, CEO and Chief Restructuring Officer of the FTX Debtors. “Our goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban. FTX customers and creditors will benefit from additional recoveries, along with other Grayscale Trust investors that are being harmed by Grayscale's actions.”

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

TrustPlus (TRUST) на Currencies.ru

$ 0.00388 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -44.03 %
Cегодня L: $0.00388 - H: $0.00388
Капитализация $135.274k Rank 99999
Доступно / Всего 34.865m TRUST

grayscale barry violated silbert allegedly trust according

grayscale barry → Результатов: 82


Alameda, FTX Demand Grayscale To Unlock $9 Billion From BTC, ETH Trusts In New Lawsuit

Grayscale, the world’s largest Bitcoin fund, is being sued by Alameda and FTX on behalf of FTX’s debtors and affiliates. According to a press release issued by the FTX Debtors on Monday, claims have also been filed directly against Grayscale CEO Michael Sonnenshein and Digital Currency Group (DCG) CEO Barry Silbert. Grayscale is owned by […]

2023-3-7 13:30


Barry Silbert’s DCG selling off assets at distressed prices, but market doesn’t care

Key Takeaways DCG own the Grayscale Bitcoin Trust, which has been trading at a sizeable discount following concern around the reserves held DCG has begun selling off crypto assets at distressed prices following bankruptcy of Genesis Market seems to have priced this in, but there could be more twists to come A couple of weeks […] The post Barry Silbert’s DCG selling off assets at distressed prices, but market doesn’t care appeared first on CoinJournal.

2023-2-7 16:30


Барри Силберт подтвердил намерение о преобразовании биткоин-траста GBTC в ETF

Основатель и CEO Digital Currency Group (DCG), материнской компании Grayscale Investments, Барри Силберт подтвердил, что биткоин-траст GBTC преобразуют в торгуемый на бирже фонд (ETF). $38 billion.

2021-10-18 20:15


Фото:

Institutional Frenzy: Grayscale Brought In An Additional $300 Million Into Its AUM In Just 24 Hours

Grayscale, a digital currency asset manager that predominantly gives institutional investors exposure to cryptocurrencies, recently recorded a blockbuster day. The company’s CEO Barry Silbert revealed in a tweet on October 22 that it had added a staggering $300 million to the total assets it manages in just one day. This saw its assets under management […]

2020-10-24 19:29


Grayscale kicks off national cryptocurrency ad campaign on CNBC, MSNBC, FOX

Grayscale Investments, a crypto investing and asset management company, has launched a nation-wide cryptocurrency ad campaign with TV commercials airing on CNBC, MSNBC, FOX, and FOX Business in the United States Barry Silbert, the company’s CEO, announced the campaign last week, while Micheal Sonnenshein, Grayscale’s managing director, shared the ad on Twitter earlier today.

2020-8-11 04:16


Grayscale Launches National Ad Campaign Aimed at Driving Cryptocurrency Adoption

Grayscale Investments has launched a nationwide cryptocurrency-focused ad campaign in the US intended to get more people into the crypto space. On Friday, Grayscale’s founder Barry Silbert announced the launch of the campaign tweeting, Are you ready? @Grayscale’s national ad campaign kicks off next week with a TV ad on CNBC, MSNBC, FOX, and FOX […] The post Grayscale Launches National Ad Campaign Aimed at Driving Cryptocurrency Adoption appeared first on BeInCrypto.

2020-8-11 17:16


Фото:

Grayscale Set to Launch Crypto Ad Campaign on CNBC, MSNBC, FOX, and FOX Business

Grayscale Investment, the world’s largest crypto asset fund manager is bringing bitcoin (BTC), ether (ETH) to people’s television. A Well-Timed Campaign? In a recent tweet, Barry Silbert, the founder and CEO of Digital Currency Group, the parent firm of Grayscale Investment, Genesis Trading, and crypto publication Coindesk stated that Grayscale is set to kick-start a nationalRead MoreRead More.

2020-8-9 15:07


Барри Зильберт: «стейблкойны от центробанков повысят ценность биткойна»

Глава Grayscale Investments и Digital Currency Group (DCG) Барри Зильберт (Barry Silbert) считает, что выпуск государственных стейблкойнов приведет к росту биткойна. Об этом он заявил на конференции Grayscale, на которой обсуждался вопрос, как биткойн может быть связан с развитием стейблкойнов, децентрализованных финансов и цифровых валют от центральных банков.

2020-2-13 08:00


Фото:

Trillions of Dollars Could Flow into Bitcoin Over Next 25 Years: Grayscale

With the ‘gold-loving’ baby boomer generation set to retire; trillions of dollars could potentially flow into bitcoin — the emerging favorite among millennial investors. Twilight Dawns for Baby Boomer Generation Speaking during the 2019 Mid-Year Review Webinar, Barry Silbert, CEO of Grayscale highlighted that there is an imminent generational wealth transfer that could change the dynamics of store of value (SoV) investing in the United States.

2019-7-23 16:17