Digital asset managers Grayscale Investments and Osprey Funds have reached a settlement settlement after their long-drawn authorized dispute over advertising practices.
A movement filed with the Connecticut Appellate Court docket on April 9 reveals the events are taking a look at 45 days to finalize settlement documentation after Osprey appealed a February determination favoring Grayscale.
“Quickly after this attraction was filed, the events reached a settlement of this case,” a replica of the movement first uploaded by Law360 reads. Grayscale and Osprey would then must “end documenting the settlement” and perform the phrases earlier than the attraction may be pulled.
The lawsuit, filed in January 2023, centered on allegations that Grayscale misled traders concerning the prospects of its Bitcoin Belief (GBTC) changing to an exchange-traded fund.
Fairfield-based Osprey, which operates its personal Bitcoin belief albeit with a smaller market share, claimed Grayscale violated Connecticut’s Unfair Commerce Practices Act (CUTPA) by allegedly misleading advertising.
Court docket data present the litigation with Osprey intensified after Grayscale obtained SEC approval to “uplist” and convert its Bitcoin Belief to an ETF in January 2024, following a protracted battle with the regulator.
Osprey subsequently amended its grievance, arguing that Grayscale misrepresented its progress towards ETF conversion. Osprey remains to be working to transform their OBTC to an ETF.
Superior Court docket Choose Mark Gould granted abstract judgment to Grayscale on February 7, 2025, ruling that CUTPA didn’t apply to securities instances.
That judgment got here after over two years of authorized proceedings, which included counterclaims by Grayscale alleging related unfair practices by Osprey. These counterclaims have been voluntarily dropped earlier than the abstract judgment, the case historical past reveals.
It is value noting that earlier than the February ruling, Osprey had tried to settle the case in July 2024 for roughly $2 million, however Grayscale declined that provide.
Monetary phrases and different situations of the present settlement settlement haven’t been disclosed, and it stays unclear whether or not the settlement consists of any admission of legal responsibility by both get together.
Representatives from each corporations haven’t issued public statements relating to the present settlement phrases.
Decrypt has reached out to Grayscale and Osprey however didn’t obtain a response by press time.
Edited by Sebastian Sinclair
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