• FTX, a now-defunct crypto exchange, has hired crypto firm Galaxy to manage its cryptocurrency holdings.
• Galaxy will provide advisory services to limit FTX’s exposure to adverse price movements and generate returns from staking digital assets.
• FTX aims to reimburse creditors in traditional fiat currency rather than Bitcoin or Ethereum, and is seeking guidance on how to conduct trading without causing significant devaluation of its crypto assets.
FTX Teams Up With Galaxy To Strategically Manage Crypto Holdings
Now-defunct crypto exchange FTX has hired crypto firm Galaxy to handle its cryptocurrency holdings through selling, staking, and hedging. Led by crypto billionaire Mike Novogratz, Galaxy will provide advisory services to FTX with the goal of limiting its exposure to adverse price movements.
Value Of Crypto Assets
FTX’s crypto assets are valued at over $3 billion. The company intends to earn interest on its crypto holdings in order to provide further value for customers still awaiting repayment.
Galaxy Digital’s Investment In FTX
Galaxy Digital, part of Mike Novogratz’s crypto conglomerate, disclosed earlier that it had significant investments tied up in FTX at the time of the exchange’s bankruptcy.
FTX International Proposes A Relaunch
Earlier this month, FTX’s new management proposed to reboot the exchange for offshore customers only. Efforts around an FTX relaunch have managed to recover over $7.3 billion in cash and liquid crypto assets.
FTX seeks guidance from market experts on strategies such as implementing weekly sales limits in order mitigate potential downside risk prior to the sale of any assets. The company aims to reimburse creditors with traditional fiat currency rather than Bitcoin or Ethereum.