Grayscale Faces Shareholder Lawsuit
Shareholders of Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) are suing Grayscale. They aim to force Grayscale to allow cryptocurrency redemptions from its trusts and repay “exorbitant” management fees.
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Alameda Research, a major GBTC and ETHE shareholder, initiated the lawsuit, with many funds joining as plaintiffs. The lawsuit alleges Grayscale breached duties to investors, charging over $1.3 billion in fees in two years.
The plaintiffs want to recover these funds and adjust GBTC and ETHE's fee structures. Grayscale's GBTC once charged a 2% annual fee, but competitors now offer lower rates. GBTC's price once mirrored bitcoin's, but a six-month lockup led to price divergence.
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