FTX’s affiliate, Alameda Research, has withdrawn a lawsuit against Grayscale Investments accusing the digital asset manager of self-enrichment at the expense of shareholders, according to a court filing on Monday.
The lawsuit, initially filed by Alameda in a Delaware court in March of the previous year, had also alleged that Grayscale imposed high fees and denied investors the ability to redeem shares from its two crypto-focused trusts, namely the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust.
The legal action named Grayscale CEO Michael Sonnenshein, parent company Digital Currency Group (DCG), and its CEO Barry Silbert as defendants. Grayscale has not provided an immediate response to a Reuters request for comment.
In a significant development, GBTC transitioned to trading as an exchange-traded fund on NYSE Arca earlier in the month after receiving approval from the U.S. Securities and Exchange Commission to convert its existing Grayscale Bitcoin Trust into an ETF.
FTX, facing bankruptcy since November 2022, has been actively seeking to recover assets to fulfill obligations to its creditors.