Troubled crypto exchange FTX hires Galaxy Digital to manage recovered crypto assets
- FTX, a bankrupt crypto exchange, is seeking authorization for Galaxy Digital to handle its recovered virtual currencies.
- Giving Galaxy Digital the responsibility is part of FTX’s restructuring process.
- Selling the recovered cryptocurrencies on a crypto exchange could risk supply shock and hurt the prices of digital assets, so FTX cannot do it themselves.
- FTX founder Sam Bankman-Fried is accused of mishandling billions of dollars worth of customer funds and defrauding investors.
- FTX recovered $7 billion worth of crypto assets but still owes customers about $8.7 billion.
Hot Take
FTX’s decision to hire Galaxy Digital to manage its recovered crypto assets is a strategic move in its restructuring process. By entrusting a prominent crypto asset management firm, FTX aims to ensure the responsible handling of its virtual currencies without risking a supply shock and a decrease in asset value. With FTX founder Sam Bankman-Fried facing serious legal accusations, the exchange’s recovery efforts are crucial for its future. However, the substantial debt it still owes to customers highlights the challenges FTX continues to face.
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