Galaxy

As the bankrupt FTX exchange prepares to settle obligations to creditors affected by its 2022 collapse, it has cautioned the public about its sole authorized investment manager.
In an X post on March 1, FTX&nbsp;said&nbsp;the sale of digital assets by FTX Debtors mandated by the bankruptcy court is solely managed by Galaxy Asset Management, the authorized investment manager. “Several non-authorized third parties are attempting to solicit bids from buyers on behalf of the FTX Debtors,” the former exchange stated.
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 Screenshot of FTX’s announcement on X social platform. Source: <a href="https://twitter.com/FTX_Official/status/1763633686770020738" target="_blank" rel="noopener noreferrer nofollow">FTX/X</a>
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In addition, FTX explained that if the FTX Debtors sell locked digital assets, the terms and conditions governing the schedule for unlocking the holdings would still stand.&nbsp;The bankrupt exchange has actively worked on restructuring and repaying its creditors in recent months. The platform has recovered assets totaling $7 billion, which it is using to repay former customers.
FTX obtained approval from the United States Bankruptcy Court for the District of Delaware in a Feb. 22 hearing <a href="https://cointelegraph.com/news/ftx-court-approval-sell-billion-dollar-anthropic-ai-stake" rel="noopener noreferrer nofollow">to sell its stake of over $1 billion</a> in the artificial intelligence (AI) firm Anthropic.
Related: <a href="https://cointelegraph.com/news/sbf-sentencing-letters-highlight-efforts-recover-ftx-funds" rel="noopener noreferrer nofollow">SBF sentencing: Letters highlight efforts to recover FTX funds</a>
This came after a<a href="https://cointelegraph.com/news/ftx-moves-offload-8-stake-anthropic" rel="noopener noreferrer nofollow">motion filed by FTX</a> to sell its 7.84% Anthropic stake. FTX first invested about $530 million into the AI startup in April 2022, months before it collapsed and filed for Chapter 11 bankruptcy in November of that year.
In December 2023, FTX debtors <a href="https://cointelegraph.com/news/ftx-debtors-bitcoin-claims-bankruptcy" rel="noopener noreferrer nofollow">proposed claimants receive reimbursement</a> based on the prices of crypto assets at the time of bankruptcy.
FTX creditors, in turn, <a href="https://cointelegraph.com/news/ftx-creditors-in-kind-crypto-repayments-low-prices" rel="noopener noreferrer nofollow">proposed “in kind” repayments</a> for crypto holdings. However, Judge John Dorsey sided with the debtors, saying in a Jan. 31 ruling that the law was “very clear” on the matter.
A jury found former FTX CEO Sam&nbsp;Bankman-Fried <a href="https://cointelegraph.com/news/ftx-founder-sam-bankman-fried-found-guilty-on-all-charges" rel="noopener noreferrer nofollow">guilty of seven charges in his criminal trial</a> on Nov. 3, 2023, including wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy and money laundering conspiracy. His sentencing is expected on March 28, where he will face a maximum sentence of 110 years in prison.
Magazine: <a href="https://cointelegraph.com/magazine/can-you-trust-crypto-exchanges-after-the-collapse-of-ftx/" rel="noopener noreferrer nofollow">Can you trust crypto exchanges after the collapse of FTX?</a>

FTX issues warning on authorized bids and asset sales

Cointelegraph

Other articles published on Mar 2, 2024

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