Alameda Research Withdraws Lawsuit Against Grayscale

Alameda Research has withdrawn its lawsuit against Grayscale Investments, which was originally filed in March 2023.

The suit had alleged that Grayscale was engaging in practices that suppressed the value of FTX debtors’ assets and sought a court order to stop the charging of management fees and the self-imposed redemption ban for shareholders of the Grayscale Bitcoin (GBTC) and Ethereum Trusts.

According to FTX, the fees had exceeded $1.3 billion at the time of the lawsuit. Grayscale CEO Michael Sonnenshein and parent company Digital Currency Group (DCG) CEO Barry Silbert were also named in the lawsuit, but Silbert resigned from the Grayscale board in December.

In a statement, a Grayscale spokesperson expressed satisfaction with the voluntary dismissal of the lawsuit and reiterated that the legal action had no merit.