FTX Files Petition for Galaxy Digital to Manage Recovered Crypto Assets

Galaxy Digital is set up to manage the sale of bankrupt FTX's crypto holdings and facilitate the staking of certain tokens to generate a passive return.< /p> News Join us on social networks

Mike Novogratz's digital asset management company, Galaxy Digital, appears ready to manage the remaining cryptocurrency holdings of bankrupt cryptocurrency exchange FTX.

On August 24, the company filed a petition with the United States District Court for the District of Delaware seeking clearance and approval of guidelines for the sale of digital assets recovered during bankruptcy proceedings in progress.

The filing outlines FTX's demands and plans to transfer some $7 billion in recovered cryptocurrency tokens under Galaxy Digital's management after the stock exchange crashed in 2022.

Related: FTX Releases Restructuring Plan, Hints at Restarting Offshore Exchange

FTX intends to anticipate the potential sale of its cryptocurrency holdings and equity tokens through Galaxy Digital, as noted in its opening statement. The filing outlines a “comprehensive management and monetization plan” for its cryptocurrency holdings that aims to reduce exposure to volatility and potential fiduciary repayments to creditors.

FTX intends to retain Galaxy Digital as a registered investment adviser, leveraging its “expert knowledge” of digital asset markets to help the firm maximize the value of its token portfolio.

The company has noted a number of powerful...