Crypto Updates

FTX Taps Galaxy to Increase Value for Creditors

Back to Basics after FTX

The bankrupt cryptocurrency exchange FTX has turned to
Mike Novogratz-owned Galaxy for guidance and expertise on how to optimize the value of its
substantial crypto holdings. FTX is planning to delve into crypto staking,
hedging, and sale of its crypto assets valued at USD $3 billion.

According to a court
filing made yesterday (Wednesday), the exchange is faced with the challenge of
returning funds to creditors in fiat currency rather than the volatile
cryptocurrencies such as Bitcoin (BTC) and Ether (ETH). The company aims to tap
into Galaxy’s experience, especially through its subsidiary, Galaxy Digital.

“Generally, the
investment guidelines will provide for sales of certain debtor’s digital assets
over time and for the hedging of debtors’ Bitcoin and Ether prior to
sale,” FTX’s debtors stated. “Hedging of Bitcoin and Ether, two
digital assets for which there is a liquid hedging market, will provide a means
to lessen the debtors’ exposure to adverse price movements.”

FTX’s strategy is not
solely focused on risk management . The exchange is also venturing into staking
certain digital assets, a step that reportedly has the potential to generate
passive yield. Additionally, the exchange is exploring the concept of
controlled sales through…

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