FTX Estate Drops Grayscale Lawsuit, Sells Majority of Bitcoin Trust Shares
The FTX estate has withdrawn its lawsuit against Grayscale Investments following the sale of over $1 billion in Grayscale Bitcoin Trust shares, advancing its goal of repaying creditors as its assets appreciate in value.
The estate of the collapsed FTX cryptocurrency exchange has withdrawn its lawsuit against Grayscale Investments, as reported by Reuters. This legal development follows closely on the heels of FTX's significant divestiture in the Grayscale Bitcoin Trust (GBTC), a move detailed by CoinDesk.
Initially, FTX had brought a lawsuit against Grayscale in a Delaware court last year, accusing the digital asset manager of practices detrimental to shareholders, such as high fees and restrictions on redeeming shares from its crypto trusts. Named in the lawsuit were Grayscale CEO Michael Sonnenshein, Digital Currency Group (DCG), and its CEO Barry Silbert. However, recent court documents indicate that all allegations have been dismissed.
In a strategic financial move, FTX has sold about 22 million shares of GBTC, with the total value of the sale surpassing $1 billion, coinciding with GBTC's conversion to an ETF, a noteworthy development in the crypto world.
The final steps taken by FTX's estate, including the lawsuit withdrawal and the large-scale sale of GBTC shares, are crucial in its ongoing efforts to repay creditors and make its customers whole. Since the initiation of bankruptcy proceedings, most of FTX's holdings have appreciated, positioning the estate closer to achieving its goal of maximizing returns for its customers.