The public has been advised by the bankrupt FTX exchange about its one and only authorized investment manager, as it gets ready to refund debts to creditors impacted by its collapse in 2022.FTX stated in a post on March 1st, X, that Galaxy Asset Management, the approved investment manager, is the only entity in charge of managing the digital asset sales ordered by the bankruptcy court on behalf of FTX Debtors.The defunct exchange said that “a number of unapproved third parties are attempting to solicit bids from buyers on behalf of the FTX Debtors.”
Furthermore, FTX clarified that the terms and conditions dictating the timeline for unlocking the holdings would remain in effect even in the event that the FTX Debtors sold locked digital assets.In recent months, the bankrupt exchange has made significant efforts to restructure and pay back its creditors.Seven billion dollars’ worth of recouped assets are being used by the platform to pay back previous users.
FTX received permission to sell its over $1 billion stake in the artificial intelligence (AI) company Anthropic from the United States Bankruptcy Court for the District of Delaware on February 22 during a hearing.Related: SBF sentencing: Letters emphasize FTX money recovery effortsThis followed FTX’s motion to sell its 7.84% Anthropic interest.The AI business received its initial investment from FTX in April 2022, approximately $530 million, a few months before it failed and declared Chapter 11 bankruptcy in November of the same year.Reimbursement to the proposed claimants of FTX debtors is contingent upon the value of crypto assets at the time of bankruptcy in December 2023.
In response, FTX creditors suggested “in kind” reimbursements for cryptocurrency holdings.Judge John Dorsey, however, decided to support the debtors, stating in a decision dated January 31 that the law was “very clear” in this regard.During his criminal trial on November 3, 2023, a jury found former FTX CEO Sam Bankman-Fried guilty of seven counts, including conspiracy to commit wire fraud, securities fraud, commodities fraud, and money laundering.On March 28, he is scheduled to be sentenced; a maximum of 110 years in jail will be imposed.