Galaxy Digital Manages Recovered Crypto Holdings with FTX
FTX Sells $7 Billion Worth of Crypto to Galaxy Digital Mike Novogratz’s digital asset management firm, Galaxy Digital, is set to manage the remaining cryptocurrency holdings of bankrupt crypto exchange FTX. On Aug. 24, the company filed a motion with the United States District Court for the District of Delaware to approve and authorize the…
FTX Sells $7 Billion Worth of Crypto to Galaxy Digital
Mike Novogratz’s digital asset management firm, Galaxy Digital, is set to manage the remaining cryptocurrency holdings of bankrupt crypto exchange FTX. On Aug. 24, the company filed a motion with the United States District Court for the District of Delaware to approve and authorize the sale of digital assets recovered during bankruptcy proceedings.
The filing outlines FTX’s plans to transfer approximately $7 billion worth of crypto tokens to Galaxy Digital’s management following the exchange’s collapse in 2022. Additionally, FTX intends to provide for the potential sale of its crypto holdings and stake tokens through Galaxy Digital, as mentioned in its preliminary statement. The filing notes that FTX is implementing a “comprehensive management and monetization plan” for its crypto holdings to reduce exposure to volatility and potential fiat payments to creditors.
FTX and Galaxy Digital’s Partnership
FTX has chosen to enlist Galaxy Digital as a registered investment adviser, capitalizing on its “specialized knowledge” of the digital asset markets to help the company maximize the value of its token portfolio.
The partnership could offer a variety of advantages, such as the ability to anonymously sell its holdings into the markets and reduce the risk of market manipulation.
FTX has stated that Galaxy Digital will be responsible for selling various FTX-owned crypto assets in the future, as well as hedging Bitcoin (BTC) and Ether (ETH) before any potential sales.
FTX plans to sell its crypto com holdings for fiat to reduce exposure to market volatility while taking advantage of liquid hedging markets for Bitcoin and Ether to lessen exposure to unexpected price fluctuations before their sale.
Decentralized Finance also gets a nod in the filing, with FTX noting that it intends to stake certain cryptocurrencies, such as crypto.com, crypto alerts, crypto shiba inu, crypto regulation, brise crypto, breaking crypto, crypto com, crypto reddit, crypto shiba, and crypto websites, to generate passive yield income under the guidance of Galaxy Digital:
As bankruptcy proceedings continue, FTX recently filed a proposed restructuring plan that hints at creating a rebooted offshore exchange. This could see creditors be given the option to get a portion of their lost funds or opt for a share of equity, tokens, and other interests in an FTX reboot.