FTX Hires Galaxy Digital to Sell Crypto Holdings in Bankruptcy Proceedings
- FTX exchange has hired Galaxy Digital to sell its crypto holdings as it undergoes bankruptcy proceedings.
- Galaxy Digital will hedge and eventually sell FTX’s Bitcoin and Ethereum positions to reduce crypto exposure and mitigate risk.
- Before selling, Galaxy Digital will stake the assets to earn yield.
- FTX’s sister company, Alameda Research, previously lost $72,000 in Aave due to on-chain errors.
- FTX’s lawyer aims to conclude bankruptcy proceedings by the second quarter of 2024 and is trying to recover funds sent as donations.
The New York Metropolitan Museum of Art Returns $550,000 to FTX
- The New York Metropolitan Museum of Art has voluntarily agreed to return $550,000 to FTX, which is in bankruptcy.
- FTX has warned beneficiaries of legal actions if they do not voluntarily return funds.
Hot Take: FTX Seeks Expertise to Navigate Bankruptcy
FTX’s decision to hire Galaxy Digital reflects its need for an experienced digital assets trading firm to navigate bankruptcy proceedings. By leveraging Galaxy Digital’s expertise in crypto, FTX aims to reduce its crypto exposure, mitigate risk, and eventually sell its crypto holdings. This move comes after FTX’s sister company, Alameda Research, faced embarrassing on-chain errors in the past. Additionally, FTX is actively trying to recover funds sent as donations. The voluntary return of funds by the New York Metropolitan Museum of Art suggests a willingness to cooperate. FTX’s focus on resolving bankruptcy proceedings and clawing back funds demonstrates its determination to overcome financial challenges.
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