Alameda Research, an affiliate of the bankrupt cryptocurrency exchange FTX, has withdrawn its lawsuit against Grayscale Investments, alleging the digital asset manager of “enriching itself at shareholders’ expense,” as per a court document on Monday.
In March of last year, Alameda filed the case in a Delaware court, accusing Grayscale of imposing exorbitant fees and delaying investor redemptions from its two cryptocurrency-focused trusts, the Grayscale Ethereum Trust and the Grayscale Bitcoin Trust (GBTC).
The complaint named parent company Digital Currency Group (DCG) and its CEO, Barry Silbert, as well as Grayscale CEO Michael Sonnenshein. A representative for Grayscale stated, “Alameda’s voluntary dismissal underscores Grayscale’s position that this legal action was entirely without merit.”
Following approval from the U.S. Securities and Exchange Commission to convert its current Grayscale Bitcoin Trust into an exchange-traded fund (ETF), GBTC started trading as an exchange-traded fund earlier this month on NYSE Arca.
Also Read: FTX and Alameda Moves $23 Million More to Exchanges
