FTX’s new CEO and chief debt restructuring officer, John Ray, said the company will continue to “use all possible tools to maximize recovery for FTX customers and creditors.” Ray’s job is to oversee the FTX bankruptcy process and, most importantly, recover funds from clients and creditors.
“Our goal is to uncover value that we believe is currently being suppressed by Grayscale’s self-initiative and wrongful prohibition on share redemptions,” he said.
Grayscale provides U.S. investors with the opportunity to purchase cryptocurrency investment products through traditional market instruments. As of March 3, Alameda owned about $290 million worth of bitcoin and ethereum trusts in Grayscale, according to a statement from Alameda’s lawyers. Alameda’s shares account for 3% and 2% of total shares at the end of 2022, respectively.
Lawyers argue that the value of the total stake could rise to $540 million, but if Grayscale reduces the commission for Alameda.
“This lawsuit stems from defendants’ blatant misuse of their control of nearly $19 billion in digital assets to enrich themselves at the expense of trust shareholders,” Alameda’s lawyers say in court documents.
Grayscale claims that under the company’s rules, the repurchase of shares is not possible.
Previously, FTX interim managers were only able to find $2.7 billion of the $11.6 billion that should be in client accounts. Part of the shortfall can be attributed to Alameda Research, which borrowed $9.3 billion from customer accounts before the crash.
Source: Bits
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