Alameda Research wants GBTC shareholders to join lawsuit against Grayscale Alameda Research wants GBTC shareholders to join lawsuit against Grayscale
Alameda had filed a lawsuit against Grayscale in March, alleging that the firm was unjustly enriching itself at the expense of shareholders.
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Updated: Jul. 28, 2023 at 6:11 pm UTC
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Alameda Research, a bankrupt crypto investment firm, is soliciting the support of claimants holding 10% of Grayscale’s Bitcoin Trust (GBTC) shares in its ongoing lawsuit against the crypto investment management company and its parent firm, Digital Currency Group (DCG).
Alameda has announced plans to file an amended complaint against Grayscale. The amendment aims to include additional plaintiffs who own a minimum of 10% of the outstanding shares of its BTC Trust.
The firm continued that it was in discussion with several unnamed GBTC shareholders who are willing to join as co-plaintiffs.
However, Alameda has requested an additional five days for these unnamed GBTC shareholders to confirm their participation and contribute to the amended complaints.
Community calls for GBTC shareholders
Earlier today, Bitcoin Magazine CEO David Bailey urged GBTC shares holders to join the lawsuit by registering on RedeemGBTC.com.
“What happens next will affect all shareholders and determine if we are investors or hostages,” he said.
Bailey emphasized that those holding over 100,000 GBTC shares needed to join the lawsuit because it was the investor’s best shot at getting Grayscale to act.
Alameda had filed a lawsuit against Grayscale in March, alleging that the firm was unjustly enriching itself at the expense of shareholders, citing its refusal to allow shares redemption for underlying assets and its high sponsor’s fees were derivative.
However, Grayscale moved to dismiss Alameda’s lawsuit in May, arguing that the allegations brought by the bankrupt crypto firm could only be filed by at least two unaffiliated shareholders who own a minimum of 10% of the Trusts’ shares.
According to ycharts data, GBTC’s discount to its net asset value (NAV) has recently widened to 30.11%, following an extended period of narrowing earlier this month.
Grayscale is currently engaged in a legal dispute with the Securities and Exchange Commission (SEC), stemming from the SEC’s refusal to approve its plan to convert its Bitcoin Trust into an ETF.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
