A group of shareholders of the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) have banded together to bring a lawsuit against Grayscale. Their goal: bringing legal action against Grayscale in an attempt to force them to allow redemptions for customer cryptocurrency held within the trusts it operates and to repay “exorbitant” management fees.
One of the largest GBTC and ETHE shareholders, Alameda Research, has filed a lawsuit against Grayscale with numerous funds joining as plaintiffs. Thein Delaware’s Chancery Court, with the assertion that Grayscale has breached its “contractual and fiduciary duties to Alameda and other trust investors.” The specific complaint accuses Grayscale of charging excessive fees in addition to its refusal to allow for the redemption of bitcoin and ether.
In the past, the price of GBTC loosely followed the bitcoin price, but due to a six-month lockup period, the share price became uncorrelated to the underlying bitcoin sitting within the trust. There were times when the trust traded at a premium of nearly 50%, meaning that the value of a share was much higher than the equivalent bitcoin held in trust, however, in February 2021, shares started trading at a discount.
The plaintiffs are putting out a call to GBTC and ETHE shareholders who are interested in joining the lawsuit. Thehas additional details for those wishing to sign up to participate in the legal battle or for those wanting to find out more about the campaign. The initial deadline for joining the litigation is Sept. 1, with the last day by which Alameda is to respond to Grayscale’s motion to dismiss scheduled for Sept. 15.and does not serve as a testimonial or endorsement by The Block.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Explainer: What's at stake in Grayscale's spot bitcoin ETF case against the SEC?The U.S. District of Columbia Court of Appeals will soon rule on whether the Securities and Exchange Commission (SEC) wrongly rejected an application from crypto asset manager Grayscale Investments to list an exchange-traded fund that tracks the price of bitcoin.
Leer más »
Building Trust, Building Business: How Trust Drives Customer SuccessThese effective strategies can help you build the customer trust you need to support your company's success.
Leer más »
Vanguard joins BlackRock, cuts support for shareholder items on climate, social issues By ReutersVanguard joins BlackRock, cuts support for shareholder items on climate, social issues
Leer más »
Hedge Fund MFN Pushes for Equity Voice in Yellow’s BankruptcyYellow says it welcomes input from MFN, the collapsed trucker’s biggest shareholder.
Leer más »
With Bitcoin Boring Again, Traders Brace for Another Round of Crypto VolatilityBitcoin is stuck in another trading lull. Will it take another three months to shake cryptos back into action? Traders bet volatility will come sooner.
Leer más »
September ‘crash’ to $22K? — 5 things to know in Bitcoin this weekBitcoin approaches the August monthly close, with BTC price expected to see volatility.
Leer más »