Alameda Research Seeks More Time in Lawsuit Against Grayscale

Alameda Research Requests More Time in Lawsuit Against Grayscale

Alameda Research, an affiliate of FTX, has requested additional time to gather co-plaintiffs in its lawsuit against Grayscale. Here are the key points:

– Alameda requested until September 15 to respond to Grayscale’s motion to dismiss the lawsuit.
– A co-plaintiff that Alameda anticipated joining the lawsuit unexpectedly backed out.
– The additional time will allow Alameda to have enough shares outstanding in Grayscale’s trusts.
– Plaintiffs need 10% of the shares outstanding to bring a derivative lawsuit.
– The lawsuit aims to unlock billions of dollars in value for shareholders by instituting a redemption plan.

FTX’s Lawsuit Against Grayscale and Digital Currency Group

FTX’s sister company, Alameda, filed a lawsuit against Grayscale and its parent company, Digital Currency Group, in March. Here’s what you need to know:

– The lawsuit claims an “improper redemption ban” on Grayscale’s Bitcoin and Ethereum Trusts.
– FTX’s goal is to unlock $9 billion or more in value for shareholders.
– The lawsuit also names Grayscale CEO Michael Sonnenshein and DCG owner Barry Silbert.
– Alameda is accused of making risky bets with customer cash, leading to FTX’s collapse.
– The lawsuit seeks to reduce associated fees and establish a redemption plan for both trusts.

Grayscale’s Lawsuit with the SEC and the Future of GBTC

Grayscale is currently engaged in a lawsuit with the SEC, which could impact Alameda’s lawsuit. Here’s what you should know:

– If Grayscale wins its lawsuit with the SEC, it could convert the GBTC trust into a Bitcoin ETF.
– A Bitcoin ETF would allow investors to gain exposure to Bitcoin without directly holding the asset.
– However, the SEC has concerns about the potential manipulation of the crypto market.
– GBTC’s illiquid nature has been cited as a reason for the collapse of hedge fund Three Arrows Capital.
– A Grayscale spokesperson dismissed Alameda’s lawsuit as “entirely without merit.”

Closing Thoughts: Moving Forward in the Lawsuit

Alameda has been granted an extension to find co-plaintiffs, and while they missed the last deadline, they believe an additional six weeks will be sufficient. Here’s our hot take:

– Alameda’s lawsuit against Grayscale and DCG aims to resolve redemption issues and unlock value for shareholders.
– The outcome of Grayscale’s lawsuit with the SEC could impact the future of GBTC and render Alameda’s lawsuit moot.
– The involvement of numerous parties and shareholders in the lawsuit highlights the potential impact of the case.

Overall, Alameda’s request for more time shows their commitment to pursuing the lawsuit and seeking a resolution that benefits shareholders.