FTX Requests Galaxy Digital to Sell Its Remaining Crypto Holdings
Michael Novogratz founded Galaxy Digital Holdings Ltd and he is now reportedly working with FTX. The defunct exchange platform hired the investor to sell its remaining crypto reserves.
The move is adopted to stop the out of commission exchange platform to prevent losses on account of the ongoing market volatility. At the same time, the firm is working on settling the outstanding payments to its creditors.
Bloomberg covered the story maintaining that regulators have approved the bankrupted crypto exchange to trade and hold a specified set of tokens. Some of these tokens include Bitcoin and Ethereum.
Bitcoin is allotted to hedge the trading positions while ETH is provisioned to decrease exposure to market fluctuations and reduce vulnerability. At the same time, FTX may stake its existing reserves in the cases where it is used to validate blockchain networks within granted scope.
FTX’s Collaboration with Galaxy Digital
FTX officials have told media that the inactive exchange has decided to consult with Galaxy Digital after consulting with its creditors and potential investors. At the same time, the exchange has applied for an investment service agreement approval from court with Galaxy Digital Management.
On the other hand, crypto community on social media has debated whether Galaxy Digital should manage FTX holdings under the context that FTX has a balance of $76 million in crypto asset stuck on it.
Meanwhile, the FTX 2.0 management has speculated that Galaxy Digital has cleared out the remaining $76 million reserves out of the exchange platform. In its court filings, Galaxy Digital has maintained that the firm has extensive experience in dealing with crypto management and investing.
At the same time, the entity has the ability to discern between various types of crypto transactions and trading positions. In related news, Alameda Research has started a new venture named GrayscaleLitigation.com in association with UTXO and Balch and Bingham LLP. The new firm works on creating a coalition between Bitcoin Trust and Grayscale Ethereum Trust.
Kroll is a case claims agent that is working with FTX and it suffered from a hack attack recently. FTX recently posted on X that Kroll was hit with a data breach attack resulting in the leaking of non-sensitive consumers’ data.
The defunct exchange maintained that Kroll is taking the necessary measures to ensure the effected clients on an individual level. The affected users may be able to take the necessary precautionary measures to protect themselves against any scams or fraudulent attacks.
The official report on the matter is unknown. However, the speculation on X postulates the theory that the attack initiated with a phishing email. The same data breach also impacted the consumers on BlockFi. However, the officials at the later enterprise have assured its users that the internal systems and client funds are not affected by this hack.
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