FTX, an exchange currently undergoing bankruptcy proceedings, is seeking assistance from Mike Novogratz’s Galaxy Digital to oversee its cryptocurrency holdings.
In a recent court filing, submitted late Wednesday, FTX requested authorization to collaborate with Galaxy Asset Management. The purpose of this partnership is to have Galaxy Digital offer “investment manager services” pertaining to specific digital assets held within FTX Trading’s account.
As of April, FTX had managed to recover $7.3 billion in both cash and liquid crypto assets. The exchange, now under the management of John Ray III, highlighted Galaxy Digital’s extensive industry expertise in the filing. FTX emphasized that Galaxy Digital possesses the necessary qualifications to provide efficient and cost-effective digital asset management and trading services.
Outlined within the filing were the specific services FTX intends for Galaxy to deliver. These encompass various activities such as purchasing, selling, swapping, redeeming, staking, holding, exchanging, converting, and trading an array of financial instruments, including cryptocurrencies.
In line with the agreement, FTX would compensate Galaxy not only for specific costs incurred but also through a “hedging fee” and a “liquidation fee.”
John Ray assumed FTX’s management reins in November of the prior year, succeeding former CEO Sam Bankman-Fried after the exchange’s descent into bankruptcy.
The exchange’s collapse affected numerous individuals and financial institutions, many of whom had investments tied up within FTX. Galaxy Digital itself had an exposure of $76.8 million to FTX at that time, as documented in the financial statements.
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