Grayscale is being sued by Alameda for holding $9 billion worth of Bitcoin Trust shares.

FTX's affiliate, Alameda Research, has filed a lawsuit against Grayscale Investments, accusing the asset manager of improperly withholding investments from its customers. FTX's new CEO, John J. Ray III, stated that Grayscale's "improper redemption ban" was preventing customers from accessing their funds. FTX collapsed in November, with hundreds of millions of dollars of client cash missing, and its former CEO facing criminal charges. FTX alleges that Grayscale has extracted over $1.3 billion in management fees in violation of trust agreements. FTX debtors are seeking injunctive relief to unlock over $9 billion in value for Grayscale shareholders. Grayscale has been transparent in its efforts to convert GBTC into an ETF and claims the lawsuit is "misguided." Another failed crypto hedge fund, Three Arrows Capital, also had trouble recovering cash from Grayscale shares.