FTX Files Court Petition to Hire Galaxy Digital’s Services to Sell its Assets

FTX has filed a court petition proposing to “buy, stake, and hedge” its $3 billion worth of digital assets, and they have chosen Mike Novogratz’s Galaxy Digital to execute this plan.

The objective is to maintain the value of the funds and, ultimately, return them to their creditors in fiat.

This strategy also enables FTX to generate extra earnings from their transactions for their clients. Galaxy Digital was selected for their “vast experience in digital asset management and investment trading”, who will also be receiving a “hedge and liquidation commission.”

Legal services related to the case currently cost FTX around $1.5 million a day.

A representative of the lenders stated that the lawyers’ fees have now reached almost $50 million a month, meaning that every dollar spent on this case is essentially reducing the funds available to their clients.

Alameda Research was the recipient of the $175 million that FTX and Genesis agreed to pay when the original claims of $3.9 billion were reduced to $2 billion.

In June, the FTX leadership reported returning liquid assets of about $7 billion.