To repay its creditors, the FTX group is stepping up legal action: its CEO John J. Ray III is currently trying to recover $550 million from asset manager Grayscale Investments. We take stock of the sums collected by the bankrupt company.
Grayscale sued by FTX
Since the collapse of the FTX group in November 2022, its new CEO John J. Ray III has been trying to recover as much funds as possible in order to reimburse its injured customers and creditors. In this context, legal action is taken against Grayscale Investmentsthe asset manager specializing in cryptocurrencies.
FTX Debtors Seek Release of Over $9 Billion for shareholders of the Grayscale Bitcoin Trust (GBTC) and Ethereum Trust (ETHE), financial products developed by Grayscale whose objective is to allow exposure to these cryptocurrencies without acquiring them.
According to a press release, Grayscale would prevent investors from recovering their shares invested for years. Of the $9 billion claimed, around 250 million are in the name of the bankrupt group. However, if Grayscale lowers its fees and opens its products to withdrawals, FTX may be able to recoup over $550 million according to its CEO:
“We will continue to use all the tools at our disposal to maximize recoveries from FTX’s customers and creditors. Our goal is to unlock value that we believe is currently being suppressed by Grayscale’s breach of trust and abusive redemption ban. FTX customers and creditors will benefit from additional recoveries, as will other Grayscale Trust investors who are harmed by Grayscale’s actions. »
According to the filed lawsuit, Grayscale has collected more than $1.3 billion in management fees over the past 2 years, all in violation of the conventions around Trust products. As of this writing, GBTC is at a 42% discount to the price of Bitcoin (BTC).
👉 Buy your first bitcoins using this step-by-step guide
Paris Blockchain Week 2023
💰 50% off your tickets with the code PCrypt50 until March 8
FTX continues its search for funds
While the cumulative losses of the FTX group exceed ten billion dollars, numerous legal actions have been deployed by its leaders to raise funds.
On January 11, the firm announced that it had raised more than $5 billion in the form of various assets. At the same time, its demands have intensified against its former partners: while Alameda Research seeks to recover $446 million from Voyager Digital, FTX is fighting against Sam Bankman-Fried to recover $440 million from Robinhood shares.
At the same time, the Bahamas-based company called on all members of the US Congress who received donations from FTX to return them or face legal action: nearly a third of elected officials are affected by this measure, i.e. 196 people.
Finally, the Delaware bankruptcy court gave the company permission to sell 4 of its most important subsidiaries, namely FTX Europe, FTX Japan, LedgerX and Embed. Nevertheless, doubts continue to hang over the firm’s ability to return funds to all of its creditors.
👉 Bankruptcy of FTX: What actions to take to recover your money?
🎁 Cryptoast Research Launch Offer
1st Newsletter Free with the code TOASTNL
Source: PR Newswire
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
73 items
