FTX Trading Proposes Alliance With Novogratz’s Galaxy Digital
FTX Trading, a bankrupt entity, is proposing an alliance with Galaxy Digital, a digital asset management firm, to oversee a portion of its crypto holdings. Here are the key points:
- Galaxy would be responsible for managing FTX’s digital assets, providing strategic counsel, executing trades, and preventing adverse price fluctuations.
- Galaxy would earn management fees and revenue from asset sales as compensation.
- The proposal includes provisions for expense coverage and mutual safeguard clauses.
- Galaxy is also a creditor to FTX with $76 million tied up with the now-defunct exchange.
- FTX seeks court approval under sections 105(a) and 363(b) of the Bankruptcy Code.
FTX believes that partnering with Galaxy demonstrates its strong business acumen and will help protect and enhance the value of its digital assets during the bankruptcy process.
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