FTX sues Grayscale, seeking to reduce management fees and allow redemption of shares
FTX debtor files lawsuit against Grayscale in the Court of Chancery in the State of Delaware, alleging mismanagement as evidence of breach of trust agreement. Also claims against Grayscale's CEO Michael Sonnenshein, its parent company DCG (Digital Currency Group), and founder Barry Silbert. Additionally, lawsuit between Grayscale and SEC is pending.
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Grayscale's Lawsuit with SEC Set to Go to Trial
Additionally, the lawsuit between Grayscale and the SEC is set to go to trial soon. Grayscale has previously applied to the SEC multiple times to convert its flagship product GBTC into an ETF, as this would help align its stock price with its underlying value. However, the SEC has rejected the application citing concerns of "inability to prevent fraud and manipulation, and failure to adequately protect investors and the public interest." Three judges are set to hear arguments on March 7th, with a decision expected to take approximately three to six months.
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