Crypto news: FTX seeks support from Galaxy empire to sell its billions of cryptocurrencies
FTX, the bankrupt crypto-exchange, is reportedly looking to partner with Mike Novogratz’s Galaxy empire to maximize the sale of its billions of cryptocurrencies. The exchange aims to return funds to creditors in dollars without affecting the value of the crypto assets it plans to liquidate. By seeking advice and support from Galaxy Digital, FTX hopes to cover BTC and ETH sales while liquidating a $3 billion stake in cryptocurrencies. FTX’s lawyers have emphasized the importance of hedging bitcoin and ether to limit potential downside risks, and staking digital assets to generate low-risk returns for creditors.
FTX’s strategy to benefit creditors and prevent price collapse
FTX’s current bankruptcy manager, John J. Ray III, is concerned that selling all assets at once will cause the price to collapse and benefit short sellers and other market participants instead of the creditors. To prevent this, FTX is turning to industry experts, particularly the SEC-approved investment adviser within Mike Novogratz’s cryptocurrency conglomerate, for support. By seeking Galaxy’s assistance, FTX hopes to repay its creditors and protect their interests.
Debt collection portal for FTX customers
In July 2023, FTX launched a dedicated portal for debt collection, allowing its customers to access their account information and file a petition as part of the company’s Chapter 11 bankruptcy process. The portal is open to customers of FTX.com, FTX.us, Blockfolio, FTX EU, FTX JP, and Liquid, and the deadline for claims is September 29, 2023.
Hot Take:
FTX’s move to seek support from Galaxy Digital showcases the importance of strategic partnerships in the crypto industry. By leveraging the expertise and resources of established players like Galaxy, FTX aims to maximize the value of its cryptocurrency holdings and repay its creditors. This collaboration highlights the interconnectedness of the crypto ecosystem and the potential for collaboration to drive positive outcomes in times of financial distress.
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