Bankrupt crypto exchange FTX picks Galaxy to manage its digital assets

Insolvent cryptocurrency exchange FTX chooses Galaxy to look after its digital assets

According to court documents filed late on Wednesday, bankrupt cryptocurrency exchange FTX has recruited American crypto firm Galaxy as an advisor to assist hedge and sell its cryptocurrency holdings.

According to the petition, hedging bitcoin and ether will give FTX a way to reduce its exposure to unfavorable price changes before selling them.

Mike Novogratz, a millionaire investor, owns Galaxy, which will assist FTX with “staking” its cryptocurrency, which is the practice of lending cryptocurrency in exchange for interest in order to verify blockchain transactions.

The statement made reference to Galaxy Asset Management, the company’s investment advice division, saying that it “has extensive experience in areas relevant to digital asset management and trading, including with respect to the types of transactions and investment objectives contemplated.”

Following allegations that the company mishandled and misplaced client cryptocurrency deposits totaling billions of dollars, FTX declared bankruptcy in November 2022.

At a court hearing on Wednesday in Wilmington, Delaware, FTX attorney Brian Glueckstein asserted that the company is still on pace to complete its bankruptcy in the second quarter of 2024 despite a request for faster mediation from the court-appointed committee that represents FTX creditors.


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