Bankrupt FTX affiliate Alameda sues Grayscale

FILE PHOTO: Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - FTX said on Monday its affiliate Alameda Research had sued asset manager Grayscale Investments for imposing a "redemption ban" that "could realize over a quarter billion dollars" of asset value for the bankrupt cryptocurrency exchange's customers.

If Grayscale had reduced its fees and did not implement redemption prevention measures, which the cryptocurrency exchange alleges are improper, FTX's shares would be worth nearly 90% more than the current value of those locked up with the asset manager, FTX said.