- FTX's sister trading firm Alameda Research sued crypto investment firm Grayscale on Monday.
- The failed crypto group's new bosses want to recover losses from trusts that track bitcoin and ethereum.
FTX's trading arm is suing crypto investment giant Grayscale in a bid to claw back at least $250 million to repay customers who lost money when $4 late last year.
The now-bankrupt FTX's new bosses said they're trying to unlock $9 billion for shareholders of Grayscale's $4 and $4 products, as well as "over a quarter billion dollars in asset value for the FTX debtors' customers and creditors".
"Our goal is to unlock value that we believe is currently being suppressed by Grayscale's self-dealing and improper redemption ban," FTX CEO John Ray III said in a $4 Monday.
"FTX customers and creditors will benefit from additional recoveries, along with other Grayscale Trust investors that are being harmed by Grayscale's actions," he added.
Alameda Research filed the complaint against Grayscale in Delaware's Court of Chancery. FTX's sister trading firm also made claims against its CEO Michael Sonnenshein and its owner Digital Currency Group.
Grayscale's cryptocurrency trusts charge management fees to hold bitcoin, ether, and several other tokens for investors who don't want to own the coins directly.
Alameda holds stakes in the Grayscale's $14 billion Bitcoin Trust and its $4.7 billion Ethereum Trust as part of the FTX bankruptcy estate.
The investment products are meant to track the prices of individual cryptocurrencies, but they've slipped in value since $4. Grayscale's Bitcoin Trust is currently trading at a 42% discount to the price of $4 itself, per data from $4.
Alameda wants to redeem the shares it holds in the trusts, but at a price that matches the tokens' current market value. Bitcoin was changing hands at just under $22,500 Tuesday, while $4's price hovered just over $1,500.
According to the FTX statement, the trading firm alleges that Grayscale has charged "exorbitant management fees in violation of the Trust agreement", adding up to $1.3 billion taken from shareholders over the past two years.
The lawsuit is the latest setback for Grayscale's owners DCG, the crypto-focused venture capital and asset management firm founded by Barry Silbert.
DCG's lending arm Genesis Global Capital $4 in January, while the conglomerate is also $4 to help it raise funds to pay back some of its creditors.
Grayscale didn't immediately respond to Insider's request for comment.