Today’s crypto news highlights include FTX’s new strategy that appears to be turning to Mike Novogratz’s Galaxy empire to maximize sales of its billions of cryptocurrencies.
The intention of the crypto-exchange that went bankrupt last November 2022, is to return funds to creditors in dollars, but without affecting value.
Crypto news: FTX targets Galaxy empire as backing for sale of its billions of cryptocurrencies
According to reports, it appears that bankrupt crypto-exchange FTX is targeting Mike Novogratz’s Galaxy empire for advice and support to maximize the sale of its billions of cryptocurrencies.
Specifically, FTX seems to want to return funds to creditors in dollars, but without affecting the value of the crypto assets it would be liquidating.
For this very reason, its choice seems to be falling on Galaxy Digital, the blockchain company that is a leader in helping institutions, startups, and individuals in shaping an evolving economy.
Essentially, at present, bankrupt FTX wants to place bets so it can cover BTC and ETH sales while liquidating a $3 billion stake in cryptocurrencies.
And indeed, the document submitted by FTX’s lawyers further states the following:
“Hedging bitcoin and ether will allow the Debtors [FTX] to limit potential downside risk prior to the sale of such bitcoin or ether. Staking certain digital assets… will insure to the benefit of the estates — and, ultimately, creditors — by generating low risk returns on their otherwise idle digital assets.”
Crypto news: FTX hopes that with Galaxy’s support it can repay its creditors
Behind FTX’s strategy is the company’s current bankruptcy manager, the restructuring expert John J. Ray III, who apparently fears that selling everything at once will cause the price to collapse.
That way, instead of benefiting creditors awaiting repayment, the benefit would go to short sellers and other market participants.
That’s why FTX is turning to industry experts, especially the Security and Exchange Commission-approved investment adviser that is part of Mike Novogratz’s cryptocurrency conglomerate.
The portal for debt collection
In mid-July this year, a full eight months after the collapse of the crypto-exchange, FTX launched a dedicated portal for debt collection for its customers.
This is a tool that allows individual customers to access their account information and file a petition that will then be included in the company’s Chapter 11 bankruptcy process.
Specifically, this portal is open to all customers of FTX.com, FTX.us, Blockfolio, FTX EU, FTX JP, and Liquid. Customers are required to make their claim by 29 September 2023.
Source: https://en.cryptonomist.ch/2023/08/24/crypto-news-ftx-bets-galaxy/