- FTX reiterates Galaxy Asset Management as the exchange’s sole authorized intermediary to sell FTX’s crypto portfolio.
- The exchange warns against unauthorized third-party attempts to intervene in selling FTX’s digital assets.
- The platform previously requested the court to appoint Galaxy as its advisor, considering the asset manager’s vast experience.
The bankrupt crypto exchange FTX has officially announced the investment manager, Galaxy Asset Management, as their sole authorized intermediary for the FTX Debtors’ sale of digital assets. The platform has also warned against unauthorized third parties’ attempts to “solicit bids from buyers on behalf of the FTX Debtors.”
Following the unexpected fall of FTX in November 2022 and the subsequent arrest of its founder, Sam Bankman-Fried, the exchange had been looking for ways to reimburse its customer funds. In a court filing, FTX highlighted its preference for Galaxy Asset Management to be an advisor to help hedge and sell its crypto holdings.
Spotting Galaxy’s vast experience in crypto management, FTX stated, “Galaxy Asset Management has extensive experience in areas relevant to digital asset management and trading, including with respect to the types of transactions and investment objectives contemplated.”
In September 2023, the US Bankruptcy Court for the District of Delaware approved FTX’s request to partner with Galaxy in a bid to monetize the exchange’s crypto portfolio. Subsequently, in November 2023, the court permitted FTX to liquidate its shares in Grayscale and Bitwise worth $873 million.
In its recent X post, FTX reiterated that under Bankruptcy Court Order no. 2505, Galaxy Asset Management is the exclusive intermediary to handle FTX’s asset sale. FTX asserted, “Any offers to sell or solicitation of offers to buy would only be made by Galaxy Asset Management to interested parties who are institutional buyers or otherwise in compliance with applicable law.”
In related news, FTX founder Bankman-Fried is awaiting imprisonment of up to 110 years for his 7 criminal charges. However, his family and friends wrote to US District Judge Lewis Kaplan to minimize his punishment, highlighting his psychiatric conditions.
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