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FTX Sale Managed Exclusively by Galaxy Asset Management—What This Means for Buyers 

Last Updated March 5, 2024 1:47 PM
Shraddha Sharma
Last Updated March 5, 2024 1:47 PM

Key Takeaways

  • Galaxy Asset Management is the sole entity authorized to handle the sale of FTX’s digital assets.
  • Warning against unauthorized third parties attempting to solicit bids on behalf of FTX.
  • The official liquidation process has set claim prices for major cryptocurrencies, with a claims window open until May 15, 2024.

FTX recently announced that the sale of its digital assets as part of its bankruptcy proceedings is exclusively managed by Galaxy Asset Management (GDAM). Non-authorized parties are reportedly making attempts to solicit bids as creditors are on the road to full payouts.

What to Know About FTX Liquidation Management

Galaxy Asset Management’s role as the exclusive investment manager for FTX’s digital assets sale is to ensure a legally compliant process for potential buyers.

FTX liquidators recently posted on the official account on X, “Any offers to sell or solicitation of offers to buy would only be made by Galaxy Asset Management to interested parties who are institutional buyers or otherwise in compliance with applicable law.” 

Meanwhile, FTX has also issued a warning about several non-authorized entities attempting to solicit bids. The defunct exchange has assured that the unlocking schedule terms remain unchanged after the sale.

 FTX has opened a claim window with set prices for major cryptocurrencies, providing a benchmark for the claims process and setting expectations for creditors and investors. But, the difference in set prices and market prices has made the community unhappy.

FTX Liquidation Process Ahead

The official liquidator’s notification for creditors to submit electronic claims by May 15, 2024, has marked a major step in the liquidation process, with the first interim distribution expected to potentially start late 2024.

FTX Claims on PwC
FTX Claims on PwC

Journalist Colin Wu noted that the claims would be denominated in USD and electronically submitted to one of the big four auditing firms, PwC. The accounting firm, on behalf of the joint liquidators, lets FTX customers and non-customer creditors make a registration. 

 The applicants have to provide sufficient documentation for balance acceptance and identity verification before an asset transfer.

 According to crypto commentator ZeroHedge , FTX Chapter 11 bankruptcy could be the first case with 200% credit recovery of claims.

Meanwhile, a revival movement is taking shape after the 2022 collapse. According to Bloomberg, former employees of FTX and Alameda Research have establishment Backpack, a Dubai-based crypto exchange startup. They have reportedly raised $17m.

Additionally, LedgerPrime, now rebranded as MNNC Group, has also re-emerged. The Cayman Islands-registered hedge fund was previously a facet of the FTX empire and has reportedly attracted investors.

FTX Liquidation Becomes a Case Study

Galaxy Asset Management’s supervision of FTX’s digital assets with authorized claim processing by auditing firms offers a ray of hope for recovery.

While creditors were expected to wait years before they could submit claims, it looks like the processing might be faster than that. However, the community is not happy with the haircut on prices being offered during liquidation.

However, the outcome of the FTX liquidation could be a case study on how high-stake collapses could be realized despite insufficient insurance coverage.

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