Mike Novogratz\u2019s<\/a>\u00a0digital asset management firm Galaxy Digital looks set to manage the remaining cryptocurrency holdings of bankrupt cryptocurrency exchange\u00a0FTX.<\/p>\n On Aug. 24, the company filed<\/a> a motion with the United States District Court for the District of Delaware seeking authorization and approval of guidelines for the sale of digital assets recovered during ongoing bankruptcy proceedings.<\/p>\n The filing outlines FTX\u2019s requests and plans to transfer some $7 billion worth of\u00a0recovered cryptocurrency tokens<\/a>\u00a0under Galaxy Digital\u2019s management following the exchange\u2019s collapse in 2022. <\/p>\n Related:\u00a0FTX\u200b releases restructuring plan, hints at rebooted offshore exchange<\/a><\/em><\/strong><\/p>\n FTX intends to provision for the potential sale of its cryptocurrency holdings and stake tokens through Galaxy Digital, as set out in its preliminary statement. The filing notes a \u201ccomprehensive management and monetization plan\u201d for its cryptocurrency holdings that intends to reduce exposure to volatility and potential fiat repayments to creditors.<\/p>\n FTX intends to retain Galaxy Digital as a registered investment adviser, tapping into its \u201cspecialized knowledge\u201d of digital asset markets to assist the company in maximizing the value of its token portfolio.<\/p>\n The company noted a number of potential benefits of the partnership, including being able to anonymously sell its holdings into the markets and mitigate the risk of market manipulation. <\/p>\n \u201cSimilarly, the Debtors expect that the Investment Adviser\u2019s expertise will be crucial in assessing\u00a0the timing, trading venues and counterparties of potential transactions.\u201d<\/p><\/blockquote>\n FTX notes that the general investment guidelines will see Galaxy Digital sell various FTX-owned digital assets in the future, as well as being responsible for hedging Bitcoin (BTC<\/a>) and Ether (ETH<\/a>) before any potential sales.<\/p>\n FTX will look to sell its crypto holdings for fiat to reduce exposure to market volatility while taking advantage of liquid hedging markets for Bitcoin and Ether to lessen exposure to unexpected price fluctuations before their sale.<\/p>\n Decentralized Finance also gets a nod in the filing, with FTX noting that it intends to stake certain cryptocurrencies to generate passive yield income under the guidance of Galaxy Digital:<\/p>\n \u201cThe debtors submit that staking certain digital assets pursuant to the staking method will inure to the benefit of the estate – and, ultimately, creditors – by generating low risk returns on their otherwise idle digital assets.\u201d<\/p><\/blockquote>\n As bankruptcy proceedings continue, FTX recently filed a proposed restructuring plan<\/a> that hints at creating a rebooted offshore exchange. This could see creditors be given the option to get a portion of their lost funds or opt for a share of equity, tokens and other interests in an FTX reboot.<\/p>\n Collect this article as an NFT<\/a><\/em><\/strong> to preserve this moment in history and show your support for independent journalism in the crypto space.<\/em><\/em><\/p>\n Magazine:\u00a0Can you trust crypto exchanges after the collapse of FTX?<\/a><\/strong><\/em><\/p>\n<\/div>\n![\"\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-08\/e8c22c06-d9fa-480d-bdb4-ee6a611dded2.png\" "\\"\\"")