Bankrupt FTX Entrusts Galaxy With its Digital Assets

Galaxy Digital Acquires FTX's Crypto Assets After Bankruptcy

According to court records released late Wednesday, bankrupt crypto exchange FTX has recruited U.S. crypto business Galaxy as an advisor to assist in hedging and selling its crypto holdings.

According to the petition, hedging bitcoin and ether will reduce FTX's exposure to adverse market swings before their sale.

Galaxy, which is controlled by billionaire investor Mike Novogratz, will also assist in "stake" FTX's cryptocurrency, which is a procedure in which cryptocurrency is lent to authenticate blockchain transactions and earn interest in the process.

"Galaxy Asset Management has extensive experience in areas relevant to digital asset management and trading, including concerning the types of transactions and investment objectives contemplated," according to the document, referring to Galaxy's investment advising arm.

FTX declared bankruptcy in November 2022, following allegations that the corporation misappropriated and lost billions of dollars in client crypto deposits.