FTX Seeks Court Approval to Sell Recovered Crypto Assets, Partners with Galaxy Digital for Management
Summary:
FTX seeks court approval for the sale of recovered cryptocurrency assets, with plans to transfer $7 billion worth of tokens to Galaxy Digital. The partnership aims to reduce volatility, maximize value, and benefit from Galaxy Digital's expertise. FTX intends to sell its crypto holdings for fiat and generate passive income through staking. Galaxy Digital will manage FTX's remaining cryptocurrency assets.
FTX Seeks Approval for Sale of Recovered Cryptocurrency Assets
FTX, the bankrupt cryptocurrency exchange, has filed a motion with the District of Delaware Bankruptcy Court on Aug. 24, requesting authorization for the sale of digital assets that were recovered during the ongoing bankruptcy proceedings. The company plans to transfer approximately $7 billion worth of these recovered tokens to Galaxy Digital for management. This move is part of FTX's comprehensive plan to reduce volatility and potential fiat repayments to creditors by monetizing its cryptocurrency holdings. The partnership with Galaxy Digital is expected to maximize the value of FTX's token portfolio through the expertise of the registered investment adviser. By working with Galaxy Digital, FTX aims to sell its holdings anonymously, minimize the risk of market manipulation, and benefit from the specialized knowledge of digital asset markets. The investment guidelines will also involve the sale of various FTX-owned digital assets in the future and hedging of Bitcoin and Ethereum before potential sales. Furthermore, FTX plans to stake certain cryptocurrencies to generate passive yield income under the guidance of Galaxy Digital. As bankruptcy proceedings continue, Galaxy Digital is poised to manage the remaining cryptocurrency holdings of FTX, while FTX explores the possibility of creating a rebooted offshore exchange as part of its proposed restructuring plan.
Published At
8/24/2023 12:02:21 PM
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