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- 1 Galaxy will hedge FTX’s Bitcoin and ETH to safeguard them from price volatility.
- 2 SBF will now face two trials; the first begins on October 2, 2023, and the second on March 11, 2024.
Bankrupt crypto exchange FTX is leveraging Galaxy’s hedging techniques for its digital asset holdings to reduce its price vulnerability. FTX and its subsidiaries filed for Chapter 11 bankruptcy on November 11, 2022. The crypto exchange has sizeable holdings of Bitcoin and Ethereum and is alleged to orchestrate one of U.S. history’s most significant financial crimes.
FTX Shakes Had With Galaxy
As per the last known report, all FTX’s holdings are seized. This partnership with Galaxy would facilitate strategic hedging of these assets, saving them from price volatility. Moreover, it would allow the crypto exchange to sell these assets in the future at a decent price.
FTX could also stake its crypto holdings, a practice widely used by digital asset investors worldwide. It is lending digital assets for the verification of blockchain transactions. This technique benefits the blockchain network and garners people’s interest by facilitating new income avenues.
Galaxy has a well-versed team of experts in managing and trading digital assets. This quality qualifies them as an apt partner to address FTX’s current needs. The decision is supported by Galaxy Ditial’s stake in FTX, which is believed to be in tens of millions of dollars.
As per the August 23 court filings, the once world’s third-largest crypto exchange hired the United States-based crypto firm Galaxy. It would act as an advisor to help sell or hedge FTX’s crypto stash. The hedging of Bitcoin and ETH would ease FTX’s exposure to adverse price movement. The asset would be available for sale when needed.
What’s Going on With Sam Bankman-Fried?
Samuel Benjamin Bankman-Fried, the former crypto white knight, is alleged to have misused users’ funds and is about to face trials starting on October 2, 2023. He was arrested in the Bahamas, where FTX was headquartered, on December 13, 2022. For a brief period, he was kept in the notorious Fox Hill prison and extradited to the U.S., where he pleaded not guilty to the charges and was kept under house arrest on a $250 Million bond.
Many more counts were recently added, which went so high that the judge split the trials into two phases. The first phase starts on October 2, 2023. On witness tampering and other counts, Sam Bankman Fried’s bail was rejected, and he has been in jail since August 11, 2023.
On August 22, 2023, SBF appeared in the Southern District of New York (SDNY) court. He was accused of misusing customers’ funds for personal usage and political funding. The charges for mishandling funds were filed in December 2022, but the charges for campaign financing were imposed later.
SBF must answer about 13 allegations involving fraud, conspiracy, bribery, etc. Judge Lewis A. Kaplan set two trials. The first set will start on October 2, 2023. Some charges were added after extradition and SBF’s attorneys have objected to this addition. The issue will be cleared after the Bahamas gives the green light. The subsequent trial will begin on March 11, 2024.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
