To address its financial woes and reimburse customer funds, the bankrupt cryptocurrency exchange FTX has appointed Galaxy Asset Management as its exclusive intermediary for selling digital assets. The move comes after FTX’s founder, Sam Bankman-Fried, faced legal troubles, leading to the exchange’s unexpected downfall in November 2022.
Court approval paves the way
Following approval from the US Bankruptcy Court for the District of Delaware in September 2023, FTX partnered with Galaxy Asset Management to monetize its crypto portfolio. Subsequently, in November 2023, the court granted FTX permission to liquidate its shares in Grayscale and Bitwise, amounting to $873 million.
Galaxy Asset Management: A trusted advisor
FTX cited Galaxy Asset Management’s extensive experience in digital asset management and trading as a key factor in its selection. With Galaxy’s proven track record in handling transactions of this nature, FTX expressed confidence in its ability to manage the sale process effectively.
According to FTX, Galaxy Asset Management will exclusively handle all aspects of the asset sale, ensuring compliance with relevant laws and regulations. The exchange emphasized that any offers to sell or solicitations to buy would be made solely through Galaxy Asset Management to institutional buyers or parties per applicable legal requirements.
Legal battles and personal appeal
Meanwhile, FTX founder Sam Bankman-Fried faces the prospect of a lengthy prison sentence, with up to 110 years on the line due to seven criminal charges. Despite the severity of the charges, Bankman-Fried’s family and friends have appealed to US District Judge Lewis Kaplan to consider his psychiatric conditions and advocate for a reduced sentence.
A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
