In its first monthly update to the community, FTX clarified that Galaxy Asset Management has exclusive control over the sale of digital assets by FTX debtors, as mandated by the bankruptcy court. Despite this, unauthorized third parties have emerged, complicating the situation by attempting to solicit bids from potential buyers on behalf of debtors.
FTX reiterated its commitment to legal compliance in all sale offers and emphasized that interested parties must meet institutional buyer criteria or comply with relevant regulations. The exchange also assured that the terms governing the release of locked digital assets remain unchanged, providing stability amid legal proceedings.
This decision aligns with FTX’s previous request to appoint Galaxy as its advisor due to the asset manager’s expertise in crypto management. FTX, facing challenges since its downfall in November 2022 and the subsequent legal proceedings involving its founder, Sam Bankman-Fried, has been focused on asset recovery.
With the U.S. Bankruptcy Court’s approval, FTX partnered with Galaxy to monetize its crypto portfolio, including shares in Grayscale and Bitwise. Recent progress includes securing court approval to sell its stake in Anthropic, valued at over $1 billion, despite disagreements over asset valuation methods.
FTX debtors advocated for repayments based on crypto asset prices at the time of bankruptcy, a stance supported by the court, which rejected creditors’ proposals for “in-kind” repayments. This underscores the importance of legal clarity in the repayment process.