FTX Debtor Sale To Be Handled Exclusively By Galaxy Asset Management

Key Points:

• FTX Debtors entrust Galaxy Asset Management with digital asset sales and warn against unauthorized bids.
• The firm progresses in creditor repayment, recovers $7 billion, and gains court approval for Anthropic stake sale.
• FTX pursues legal action for Embed collapse losses and labels the situation “embezzlement.”

In a recent development, FTX Debtors exclusively entrusted Galaxy Asset Management with the sale of digital assets as per Bankruptcy Court Order No. 2505.

FTX Debtors Entrusts Galaxy Asset Management with Digital Asset Sale

The court has authorized Galaxy Asset Management to handle this matter. However, FTX has issued a cautionary note regarding unauthorized third parties attempting to solicit bids on behalf of FTX Debtors. The firm emphasizes that any offers or solicitations should be made solely by Galaxy Asset Management to institutional buyers or interested parties, adhering to applicable law.

FTX has observed unauthorized third parties already making bids for certain FTX Debtors, prompting the company to remain vigilant against potential exploitation. This vigilance is part of FTX’s ongoing mission to restructure and repay creditors, having recovered approximately $7 billion in assets for this purpose.

FTX Pursues Legal Action Following Embed Collapse

Recently, the Supreme Bankruptcy Court of the United States District Court for the District of Delaware granted FTX approval to sell its over $1 billion stake in AI firm Anthropic.

As part of the settlement, FTX debtors will retrieve 100% of the value paid for stock trading platform Embed’s acquisition and assets held under the names of Sam Bankman-Fried, former FTX executives Nishad Singh, and Gary Wang at Embed. FTX also plans to pursue other claims against former CEOs and executives, as indicated by its previous lawsuits in the U.S. Bankruptcy Court in Delaware.

These lawsuits targeted former FTX insiders, including indicted founder Bankman-Fried, Embed executives such as founder Michael Giles, and Embed shareholders. FTX’s actions come in response to the collapse of Embed in November, where significant losses were incurred, leading current CEO John Ray to label the situation as “old-fashioned embezzlement.”