Summary:
FTX, a bankrupt exchange, has requested permission to work with Galaxy Digital to manage its crypto holdings. FTX has recovered $7.3 billion in cash and liquid crypto assets and believes that Galaxy’s extensive experience makes it well-qualified to provide digital asset management and trading services. FTX hopes that Galaxy will offer various services, including buying, selling, swapping, and trading financial instruments, including crypto. Under the agreement, FTX will reimburse Galaxy for certain costs and pay both a “hedging fee” and a “liquidation fee.” Galaxy itself had exposure of $76.8 million to FTX when it filed for bankruptcy.
Key Points:
– FTX seeks permission to work with Galaxy Digital to manage its crypto holdings.
– FTX has recovered $7.3 billion in cash and liquid crypto assets.
– Galaxy Digital is well-qualified and experienced in providing digital asset management and trading services.
– FTX hopes that Galaxy will provide various services, including buying, selling, swapping, and trading financial instruments.
– FTX will reimburse Galaxy for certain costs and pay both a “hedging fee” and a “liquidation fee.”
Hot Take:
FTX’s decision to work with Galaxy Digital to manage its crypto holdings showcases the importance of experienced and reputable partners in the crypto industry. By leveraging Galaxy’s expertise, FTX aims to efficiently and effectively handle its assets. This move could potentially help FTX recover from its bankruptcy and rebuild trust with its users.
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