Loading...

FTX selects Galaxy Asset Management as the sole intermediary for asset sale

TL;DR

  • FTX chose Galaxy Asset Management to sell its digital assets after facing bankruptcy due to its founder’s legal issues.
  • The US court approved FTX’s partnership with Galaxy, allowing them to liquidate shares worth $873 million.
  • Sam Bankman-Fried, FTX’s founder, faces potential imprisonment of up to 110 years, with appeals citing his psychiatric condition.

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.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Illuvium is giving out airdrops
Cryptopolitan
Subscribe to CryptoPolitan