Bankrupt Crypto Exchange FTX’s Former Trading Arm Alameda Research Drops Lawsuit Against Grayscale
Alameda Research, the former trading arm of bankrupt crypto exchange FTX, has decided to drop its lawsuit against crypto giant Grayscale. The lawsuit, filed in March by debtors of FTX in Delaware, alleged that Grayscale had extracted over $1.3 billion in excessive management fees and caused a significant reduction in the value of shares in its Bitcoin and Ethereum Trusts.
The aim of the lawsuit was to unlock over $9 billion in value for FTX shareholders and recover a quarter billion dollars for FTX’s customers and creditors. However, Alameda has now chosen to dismiss the case voluntarily.
A spokesperson for Grayscale stated that Alameda’s dismissal confirms their position that the legal action was baseless.
FTX declared bankruptcy in November 2022.
Hot Take: Alameda Research Ends Lawsuit Against Grayscale
Former trading arm Alameda Research, associated with bankrupt crypto exchange FTX, has chosen to drop its lawsuit against Grayscale. The lawsuit alleged excessive management fees and a decrease in the value of shares in Grayscale’s Bitcoin and Ethereum Trusts. By dismissing the case voluntarily, Alameda has effectively ended its pursuit of over $9 billion in value for FTX shareholders and recovery for customers and creditors. A spokesperson for Grayscale stated that they believe the legal action was entirely without merit. This development marks an end to the legal battle between these two prominent players in the crypto industry.
By
By
By
By