Bankrupt Exchange FTX Files a Lawsuit Against Grayscale Investments

FTX has filed a lawsuit against Grayscale Investments, accusing the firm of mismanagement of funds and violation of a trust agreement.

The complaint, on behalf of the subsidiary, states that Michael Sonnenschein, the company’s CEO, and Barry Silbert, the founder of the parent structure Digital Currency Group, are also listed as defendants.

The lawsuit claims that Grayscale has received more than $1.3 billion in “inflated management fees” over the past two years and has prevented redemption of shares in trusts, leading to a 50% discount to the NAV.

FTX Exchange has requested an injunction for Grayscale to unlock $9 billion in equity value in Bitcoin and Ethereum trusts.

The current CEO of FTX, John Ray III, has stated that the team will “use any available tools” to maximize reimbursement to the exchange’s customers.