FTX, the bankrupt crypto exchange, is looking to hire Mike Novogratz’s Galaxy Digital as an advisor to help manage its sizable crypto holdings. According to court filings made late Wednesday evening, FTX wants to return funds to creditors in fiat currency rather than Bitcoin (BTC) or Ether (ETH) and is hoping to limit potential downside risk prior to the sale of such Bitcoin or Ether by hedging and staking its digital assets. FTX is also hoping to generate low-risk returns on its digital assets to add to the stock it can distribute to customers.
Galaxy Asset Management has extensive experience in areas relevant to digital asset management and trading, including with respect to the types of transactions and investment objectives contemplated, the document said. Galaxy Digital (GLXY) has previously declared it had tens of millions tied up in FTX at the time of its bankruptcy.
In an April filing, FTX company said it had $3.4 billion worth of major, liquid crypto assets. In July, it said it expected to monetize crypto into cash before returning to customers, though international customers may be able to access a rebooted exchange.