24-8-2023 (LONDON) FTX, the crypto exchange that filed for bankruptcy in November 2022 amidst allegations of mishandling and losing billions of dollars of customers’ crypto deposits, has recently appointed U.S. crypto firm Galaxy as an advisor. The move aims to assist FTX in hedging and selling its cryptocurrency holdings, as revealed in court filings submitted on Wednesday.
According to the filing, the hedging strategy will provide FTX with a means to mitigate potential losses resulting from adverse price movements before the eventual sale of bitcoin and ether. Galaxy, which is owned by billionaire investor Mike Novogratz, will also play a role in “staking” FTX’s crypto. This process involves lending crypto to validate blockchain transactions while earning interest in return.
The filing emphasized Galaxy Asset Management’s extensive expertise in digital asset management and trading, aligning with the contemplated transactions and investment objectives associated with FTX’s restructuring efforts.
During a court hearing in Wilmington, Delaware, FTX attorney Brian Glueckstein stated on Wednesday that the exchange is on track to conclude its bankruptcy proceedings by the second quarter of 2024. Glueckstein rejected a request for expedited mediation from the court-appointed committee representing FTX creditors.
