The defunct crypto giant FTX, now under trusteeship, continues to make controversial moves, recently announcing the repayment of altcoins to creditors at pre-crash values, sparking a market stir with a billion-dollar sale.
Redemptions of GBTC continue, with investors withdrawing over $2 billion, of which $1 billion is attributed to FTX’s trustee. The committee awaiting ETF approval to sell GBTC holdings is primarily responsible for the GBTC reserve squeeze that triggered negative sentiment in cryptocurrencies, as seen by the drop in BTC prices with the transfer of thousands of BTC to Coinbase addresses.
Despite the failure of an announcement in December to reactivate the exchange, the FTT Token price still finds buyers at $2.74. The next phase is likely to involve trustees selling all FTT holdings, severing ties with the token amidst rising backlash.
The bankrupt crypto exchange FTX’s subsidiary, Alameda Research, has withdrawn its lawsuit against digital asset manager Grayscale Investments, which was accused of enriching itself at the expense of shareholders.
Alameda, which filed the lawsuit last March accusing Grayscale of charging high fees, has likely retracted to avoid unnecessary legal expenses. With the SEC’s acceptance of ETF applications, the conversion of GBTC from trust to ETF became possible, eliminating the need for the lawsuit. Grayscale CEO Michael Sonnenshein, along with parent company Digital Currency Group (DCG) and CEO Barry Silbert, were targeted in the lawsuit.
