The Osprey Funds asked a Connecticut Court judge to consider his decision to hand over a Greyscale investment victory during an unfair $2 million lawsuit against the asset manager Bitcoin Fund.
Osprey Submit A February 10th retreat motion to Connecticut's Superior Court. Arbitration He came “before the end of the discovery” and expanded the scope of exemptions under Connecticut's Unfair Trade Practices Act.
In January 2023, Osprey sued Grayscale and Delaware Trust Company, claiming that he was the trustee of the flagship spot Bitcoin (BTC) Exchange Trade Fund (ETF), and mispromoted the Grayscale Bitcoin Trust (GBTC). We were able to argue and lead the market.
Osprey alleged in the lawsuit that Grayscale offered to convert that trust into an ETF as “a natural conclusion when we knew that access would never happen.”
Judge Gould sided with Grayscale in the February 7 ruling. He said the Osprey's lawsuit includes charges regarding the purchase and sale of securities that are exempt from the law.
His ruling added that at the time of Osprey's lawsuit, and Grayscale “was the only two asset managers in the market for trust-based product opportunities that provide ticker-based exposure to Bitcoin.” Ta.
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An excerpt from Judge Gould's decision. sauce: Connecticut Superior Court
A year after the lawsuit, in January 2024, the Securities and Exchange Commission approved the conversion of GBTC to ETF after losing in court against GRAYSCALE. Osprey said in July 2024 that it would settle its claim against Grayscale for just under $2 million, but did not take Grayscale.
Osprey, in his filing on February 10th, Judge Gould's decision is to see how the Federal Trade Commission and Connecticut courts deal with deceptive ads, and the FTC and courts are subject to Connecticut and federal securities laws He said he overlooked how the securities transactions will be handled.
Related: Coinbase, Judge Rules Facing Litigation over Unregistered Securities Sales
“CUTPA's limited exemption from claims under a “security transaction” is implicitly applied, and therefore from deceptive advertising between competitors simply because they do business in securities, asset management or cryptocurrency. It has never been applied to any claims arising. Industry,” Osprey wrote.
Osprey and Grayscale are not part of “security transactions” with each other, and claim that their claim is “deemed fraudulent, deceptive or otherwise executable between the parties.” did.
“In fact, Osprey's claims focus on the extent to which unfair competition in Grayscale based on deceptive ads deflects market share from Osprey,” the company's lawyer wrote.
Last month, Osprey flagged plans with the SEC to convert Osprey Bitcoin Trust (OBTC) into spot Bitcoin ETFs after a transaction acquired by rival Bitwise.
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