off-the-wire

Bankrupt FTX affiliate Alameda sues Grayscale

Kitco Media
By Reuters
Published:
Updated:
Reuters

March 6 (Reuters) - 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.

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.

Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri
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