FTX’s sister firm, Alameda Analysis, willingly dismissed litigation motion in opposition to Digital Forex Group’s Grayscale Investments shortly after spot BTC ETF approval.
Court docket filings from Jan. 22 confirmed that Alameda opted out of suing Grayscale, its CEO Michael Sonnenshein, its guardian firm Digital Forex Group’s (DCG), and founder Barry Silbert over a ban on Grayscale’s Bitcoin Belief (GBTC) redemptions.
The lawsuit submitted in March final yr alleged that Grayscale carried out a self-dealing and unfair regulation ban that withheld over $9 billion in worth from FTX’s bankrupt property.
CEO John J. Ray III, FTX’s new boss following Sam Bankman-Fried’s resignation, stated the go well with sought injunctive reduction on the time amid an amalgamation of belongings earmarked for collectors and operational bills.
A Grayscale consultant who confirmed the information added that Alameda’s determination to withdraw upholds the asset supervisor’s view on the movement. Sonnenshein’s firm had beforehand argued that the FTX-affiliated crypto buying and selling agency had zero authorized floor for a lawsuit.
Alameda’s about-face comes on the heels of regulatory nods from the Securities and Trade Fee (SEC) towards spot Bitcoin ETFs. The event allowed Grayscale to transform its flagship fund, GBTC, into an exchange-traded fund underpinned by Bitcoin (BTC).
Non-public knowledge cited by CoinDesk reportedly revealed 22 million GBTC shares bought by FTX, a haul comprising $2 billion in outflows from Grayscale’s Bitcoin ETF because the SEC issued approval on Jan. 10.
The SEC was instructed to re-review spot Bitcoin ETFs after shedding to Grayscale in court docket. Three Washington D.C. judges ruled that the SEC was “arbitrary and capricious” in denying spot BTC ETFs whereas already approving Bitcoin futures ETFs, which function as an identical product.