Billed as the premier digital currency asset management, Grayscale Investment LLC is being sued by its own shareholders, who accuse the company of mismanaging the Grayscale Bitcoin Trust (GBTC) and engaging in conflict of interest. Grayscale shareholders, including the sister firm of the FTX exchange, Alameda Research, and funds such as Fir Tree Partners, Saba Capital, …
Billed as the premier digital currency asset management, Grayscale Investment LLC is being sued by its own shareholders, who accuse the company of mismanaging the Grayscale Bitcoin Trust (GBTC) and engaging in conflict of interest.
Grayscale shareholders, including the sister firm of the FTX exchange, Alameda Research, and funds such as Fir Tree Partners, Saba Capital, Owl Creek Asset Management, UTXO Management, and Aristides Capital, have filed a lawsuit against the asset manager in Delaware’s Chancery Court.
Alameda Research and Group, the plaintiff, has launched a battle against Grayscale to compel the asset management to refund customer monies held in trust. According to reports, the company has refused to enable consumers to redeem their Bitcoin (BTC) and Ethereum (ETH).
The organization also wants the business to reimburse the inflated management fees it charges, which it describes as “exorbitant.” Notably, court records show that the business has earned at least $1.3 billion in fees since 2021.
As a result, the lawsuit wants to recoup the assets and negotiate a restructure of both GBTC and Ethereum Investment Trust (ETHE) to conform to “competitive rates.” During the campaign, the plaintiff established a website to unite shareholders in their common cause, aligning with an existing website.
Meanwhile, the asset management is awaiting a judgement from the US Securities and Exchange Commission following a delayed response in its application to have the GBTC changed into a spot BTC ETP. Notably, the Grayscale group refers to an ETF as an ETP.
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