FTX’s Alameda dismisses lawsuit against Grayscale

The suit, filed back in March, lacked “merit” according to Grayscale

January 22, 2024 02:31 pm

Grayscale and Adobe Stock modified by Blockworks

Alameda dropped its lawsuit against Grayscale on Monday.

The dismissal, confirmed by a Grayscale spokesperson, ends the injunctive relief originally sought by Alameda Research last March.

“We are pleased to confirm that Alameda Research, FTX’s affiliated hedge fund, has voluntarily dismissed its lawsuit against Grayscale,” a Grayscale spokeswoman told Blockworks. “Alameda’s voluntary dismissal underscores Grayscale’s position that this legal action was entirely without merit.”

The statement echoes Grayscale’s original comment to Blockworks on the suit, saying that it lacked “merit.”

The complaint was originally filed with Delaware’s Court of Chancery.

The FTX debtors also named CEO Michael Sonnenshein, Grayscale parent company Digital Currency Group, and CEO Barry Silbert in the filing.

The injunctive relief sought by the debtors, according to a press release at the time, was to “unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts.”

Alameda alleged initially that Grayscale had collected $1.3 billion in management fees, violating its trust agreement.

In August, Alameda said that it was attempting to add more plaintiffs to its suit against Grayscale. It claimed to have around 45 parties willing to “participate as additional plaintiffs” though it failed to name any of the interested parties.

However, by September, Alameda hadn’t added any new plaintiffs.

Blockworks reported at the time that Alameda was asking shareholders about their willingness to participate in the suit.

Grayscale filed a motion to dismiss prior to Alameda’s voluntary dismissal.

Get the news in your inbox. Explore Blockworks newsletters: