Collapsed crypto hedge fund Alameda Studies have dropped its suit against Bitcoin fund manager Grayscale, clearing the way in which for that unsuccessful crypto brand’s new management to selling shares in the recovery fund, an attorney focusing on retrieving customer funds confirmed to Decrypt.
Alameda last March sued Grayscale—which ran the Grayscale’s Bitcoin Trust (GBTC)—in an offer to unlock investments it stated were incorrectly withheld from the customers.
Since Alameda’s affiliate crypto brand FTX went bankrupt in November 2022, its new management has worked challenging back customers’ lost cash.
However the lawsuit—which alleged that Grayscale had an “improper redemption ban”—was dropped today, a Monday court filing shows.
Grayscale responded by stating that “Alameda’s voluntary dismissal underscores Grayscale’s position this law suit was entirely without merit.”
GBTC started buying and selling around the New You are able to Stock Market being an exchange-traded fund (ETF) earlier this year. Before, it operated just like a closed-finish fund, meaning it had been hard for people to redeem their and funds out.
Since its conversion to some Bitcoin place ETF, however, investors happen to be fast cashing out shares. A week ago, vast amounts of dollars were redeemed, resulting in a plunge within the cost of Bitcoin (BTC).
FTX used to be a large and revered crypto brand that incorporated an exchange people can use to purchase, sell and bet around the future cost of digital assets.
However it rapidly and suddenly went bust in November 2022 after it had been criminally mismanaged. Alameda Research would be a sister company of FTX.
Its disgraced ex-Chief executive officer and co-founder Mike Bankman-Fried—who also co-founded Alameda Research—was found guilty of seven fraud and conspiracy charges this past year.
FTX’s new management has since been focusing on returning money for clients who lost out once the exchange collapsed.
Edited by Ryan Ozawa.
