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In a lawsuit filed with a Delaware court on Monday, Alameda
attacked Grayscale for its high fees and its refusal to allow
investors to redeem their shares from its two crypto-focused
trusts, the Grayscale Bitcoin Trust (GBTC) and the Grayscale
Ethereum Trust.
DCG is already under pressure after its unit Genesis Global
Trading's bankruptcy, spurred by a crypto rout last year that
was worsened by the high-profile collapse of FTX.
Last year, Grayscale had sued the U.S. Securities and Exchange
Commission after the regulator rejected the company's proposal
to convert GBTC into an exchange traded fund (ETF).
However, Grayscale is still charging fees far bigger than those
typically paid to advisers on crypto-tied ETFs, Alameda alleged.
"The lawsuit filed by Sam Bankman-Fried's hedge fund, Alameda
Research, is misguided. Grayscale has been transparent in our
efforts to obtain regulatory approval to convert GBTC into an
ETF – an outcome that is undoubtedly the best long-term product
structure for Grayscale's investors," a spokesperson for
Grayscale said.
Alameda said it was suffering "hundreds of millions of dollars
in harm" because of Grayscale's actions.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna
Chandra Eluri and Shailesh Kuber)
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