According to Reuters News Reports, FTX said on Monday its affiliate Alameda Research had sued asset manager Grayscale Investments for imposing a “redemption ban” that “could realize over a quarter billion dollars” of asset value for the bankrupt cryptocurrency exchange’s customers.
Grayscale Investments is a digital currency investment company that creates investments inspired by a digital future, so that investors can build stronger, more diversified, and lasting financial legacies.
Blockchain technology and digital assets are radically transforming industries, creating the digital economy, and ultimately, building a digital-native world. Grayscale is, as FTX was a big player in the digital asset world.
However, If Grayscale had reduced its fees and did not implement redemption prevention measures, which the cryptocurrency exchange alleges are improper, FTX’s shares would be worth nearly 90% more than the current value of those locked up with the asset manager, FTX said.
FTX also accused Grayscale owner Digital Currency Group of breaching trust agreements and fiduciary duties.On Dec. 12, Mr. Bankman-Fried was arrested in the Bahamas for lying to investors and committing fraud.
The day after, the S.E.C. also filed civil securities fraud charges. Now
