FTX Seeks to Protect Crypto Assets
FTX, a crypto exchange, has filed a motion to protect its remaining assets by seeking authorization for an Investment Services Agreement with Galaxy Digital. This move is part of the company’s plan to hedge against asset volatility while repaying its creditors and customers. The agreement also aims to generate profit and improve liquidity to offset debts.
Terms of the Agreement
If approved, Galaxy Digital will provide management services for FTX’s assets, including trading financial instruments, futures contracts, commodities, and other investment funds. The agreement also includes support services such as administrative and accounting services. Galaxy Digital will have a fiduciary duty to seek the best terms available when executing trades on behalf of FTX. FTX, on the other hand, will be responsible for paying management fees and other expenses outlined in the agreement.
Approval and Validity
The Investment Services Agreement will only become valid with a court-approved monetization and approval order. If the court does not approve the agreement in all material respects, Galaxy Digital has the right to decline providing its services to FTX.
Conclusion
FTX’s motion to authorize the Investment Services Agreement with Galaxy Digital is a crucial step in protecting its assets and repaying its creditors. By partnering with Galaxy Digital, FTX aims to mitigate the volatility of its digital assets and generate profit to offset its debts. The court’s approval of the agreement will determine the validity of the arrangement and the extent of Galaxy Digital’s involvement in managing FTX’s assets.