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FTX Partners With Galaxy to Stake, Sell and Manage its Extensive Crypto Holdings

The bankrupt FTX exchange has decided to return the funds to the creditors in the form of fiat currencies with denting the crypto holdings.

ShahZaib Ahmed



Defunct FTX now wants to hedge, stake and sell its extensive cryptocurrency holding. And for that purpose, FTX has hired the Galaxy Digital of Michael Novogratz to assist in maximizing the value for the sales. According to the court filings disclosed on Wednesday eve, FTX has hired Galaxy to assist as an advisor for staking, selling and hedging the crypto holdings.

FTX’s Post-Collapse Strategy

FTX collapsed last year in November and since then facing tough circumstances and legal penalties. Now, FTX has decided to return the funds in the form of fiat currencies to all creditors instead of Ethereum (ETH) and Bitcoin (BTC). But on the other hand, it has few reservations that it might dent the value of crypto holdings worth $3 billion.

Also Read: Mantle Stops Token Migration to Prevent $43M FTX Conversion, BIT to MNT

In a statement, the lawyer disclosed that hedging ether and bitcoin will enable debtors (FTX) to limit the risk before selling ether or bitcoin. Moreover, staking the crypto assets will aid the estates and the creditors by looking for secure implementation of the said agenda. FTX hopes that interest on the crypto holding will assist in returning funds to those who are still looking for their money to be returned.

FTX Taps Galaxy for Assistance Amid Crisis

The last couple of months had been the worst time span for FTX. Now to stake, sell and hedge the crypto holdings, FTX has hired Michael Novogratz’s Galaxy Asset Management. Galaxy Digital has expertise in trading and managing digital assets like investments and transactions.

Digital Galaxy which is another part of the crypto empire disclosed that it had also invest in FTX when it went bankrupt. Digital Galaxy (DLXY) has roughly invested tens of millions in FTX before FTX went bankrupt. Now, new documents explain the rules they have to follow to make sure they do what’s best for FTX.

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