Legal Proceedings
−Removed: On January 30, 2023, Osprey Funds, LLC (“Osprey”) filed a suit in Connecticut Superior Court against the Sponsor alleging that statements the Sponsor made in its advertising and promotion of the Trust violated the Connecticut Unfair Trade Practices Act (“CUTPA”), and seeking statutory damages and injunctive relief.
−Removed: On April 17, 2023, the Sponsor filed a motion to dismiss the complaint and, following briefing, a hearing on the motion to dismiss was held on June 26, 2023.
−Removed: On October 23, 2023, the Court denied the Sponsor’s motion to dismiss.
−Removed: On November 6, 2023, the Sponsor filed a motion for reargument of the Court’s order denying the Sponsor’s motion to dismiss.
−Removed: On November 16, 2023, Osprey filed an opposition to the Sponsor’s motion for reargument, and on November 30, 2023, the Sponsor filed a reply in further support of its motion for reargument.
−Removed: On March 11, 2024, the Court denied the Sponsor’s motion for reargument.
−Removed: On March 25, 2024, the Sponsor filed an application for interlocutory appeal.
−Removed: On March 28, 2024, Osprey filed an opposition to the Sponsor’s application for interlocutory appeal.
−Removed: On April 1, 2024, the Court denied the Sponsor’s application for interlocutory appeal.
−Removed: On April 10, 2024, Osprey filed a motion to amend the complaint.
−Removed: The amended complaint went into effect on April 25, 2024.
−Removed: A scheduling order was entered by the Court with trial scheduled to begin on July 15, 2025.
−Removed: On July 31, 2024, the Sponsor filed a motion to strike the amended complaint.
−Removed: On August 30, 2024, Osprey filed an opposition to the Sponsor’s motion to strike the amended complaint.
−Removed: On October 11, 2024, the Court denied the Sponsor’s motion to strike.
−Removed: On November 22, 2024, the Sponsor filed a motion for summary judgment on the grounds that CUTPA does not apply to practices undertaken in connection with the purchase and sale of securities, and the Court granted the Sponsor’s motion for summary judgment on February 7, 2025.
−Removed: On February 10, 2025, Osprey filed a motion for reargument.
−Removed: The Sponsor and the Trust believe that judgment was properly granted in their favor and intend to vigorously defend against any attempts to overturn the judgment.
+Added: Grayscale Operating, LLC, the former Co-Sponsor of the Trust until May 3, 2025, was a party to certain legal proceedings during the period covered by this report.
+Added: Although the Trust is not a party to these proceedings, the Trust may in the future be subject to legal proceedings or disputes.
+Added: On May 19, 2025, Genesis Global Capital, LLC (“Genesis Capital”) and Genesis Asia Pacific Pte.
+Added: (“Genesis Asia”) filed a complaint in the United States Bankruptcy Court for the Southern District of New York (“SDNY Bankruptcy Court”) against Digital Currency Group, Inc.
+Added: (“DCG”) and certain of its affiliates including GSO alleging that Genesis Capital made certain preferential transfers to GSI, the predecessor in interest to GSO prior to the Merger, during the preference period prior to Genesis Capital’s filing of a bankruptcy petition in SDNY Bankruptcy Court while GSI was allegedly an insider to Genesis Capital pursuant to 11 U.S.C.
+Added: Genesis Capital seeks to avoid the alleged preferential transfers pursuant to 11 U.S.C.
+Added: § 547(b), as well as recovery of property and disallowance of claims.
+Added: Genesis Capital is seeking to avoid transfers to GSI, the predecessor in interest to GSO prior to the Merger, of 105 Bitcoin and 37,647.06 Ethereum Classic tokens.
+Added: GSO believes this lawsuit is without merit and intends to vigorously defend against it.
As of the date of this Annual Report, the Sponsor does not expect the foregoing proceedings to have a material adverse effect on the Trust’s business, financial condition or results of operations.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.