Galaxy Digital’s CEO assured crypto users that the leading cryptocurrencies, “Bitcoin and Ethereum are not going anywhere despite the crisis of confidence in the crypto market.” Mike Novogratz stated that he was disappointed with the current state of the crypto market. He said it would take some time to recover from the current situation.
“We certainly have a crisis of confidence in this market, and we are not out of the woods yet. There is a lot of daisy chain effect going on, and people had exposure to Three Arrows, and people had exposure to FTX, and FTX was a major player.
After the announcement of Binance, the US-based Galaxy Digital company withdrew $47.5 million (USD) from the bankrupt crypto exchange FTX. On Wednesday, the company executives released an earnings report that Galaxy’s partners hold digital assets and cash worth $77 million (USD) on the platform. And they said Galaxy Digital had zero exposure to FTX’s native token, Alameda Research and FTT.
Michael Novogratz, CEO of Galaxy Digital, stated, “the company began taking risk down from sunday night about $47.5 million (USD) is currently in the withdrawal process, and he noted Galaxy is a hopeful yet cynical depositor.”
Novogratz stated, “What’s painful about this is that Sam Bankman-Fried spent so much time in DC. It wasn’t that what he was saying was crazy.” He added, “It’s just that if the messenger noe looks like he ran his ship into an iceberg. It’s just going to anger the people he spent time with and slow this down some.”
“When you deposit your dollars on FTX exchange, they are your coins, and lending them to his family office was not part of the deal. That’s fraud,” Novogratz stated.
Recently, Galaxy released its third-quarter earnings reports. Michael said the result was awful. In Q3 earnings, the entity faced a loss of $68 million (USD) when compared to Q1 and Q3 are $112 million (USD) and $555 million (USD), respectively. The executives stated that Galaxy retains $1.5 billion (USD) in liquidity, including $1 billion (USD) in cash.
Due to the huge loss in Q3 earnings, Galaxy decided to remove 15% of its workforce from its platform. “It is always painful to let people go, but I think we have right-seized the ship and feel good about that,” Michael stated.
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