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Before its collapse, FTX was the second most prominent centralized cryptocurrency exchange, which Sam Bankman Fried and Gary Wang founded.
FTX, a bankrupt crypto exchange, has officially announced that investment manager Galaxy Asset Management is its sole authorized broker for selling FTX Debtors’ digital assets.
The platform also warned against attempts by unauthorized third parties to “solicit bids from buyers on behalf of FTX debtors.”
Sam Bankman Fried, the founder of FTX, also holds the title of youngest billionaire in the crypto space. Before establishing the exchange, Sam was a renowned crypto and traditional market trader.
In the court filing, FTX emphasized that it considers Galaxy Asset Management an advisor to help protect and sell its crypto assets. Noting Galaxy’s extensive experience in crypto management.
The filing further notes, “Galaxy Asset Management has extensive experience in the related fields. On management and trading of digital assets, including proposed transactions and for investment purposes.”
FTX Birth to Collapse
Sam Bankman and Gary Wang launched FTX in May 2019; in its early time, the exchange attracted several investors. Following the sudden injection of massive funds, the exchange flourished.
Sam’s exchange has also made significant investments in several startups; Anthropic Ai secured $500 million in funding from FTX. Temasek, Softbank, Sequoia Capital, and other leading VCs are the major investors in the ecosystem.
In FTX’s aftermath, regulators are piecing together potential wrongdoings at the fallen giant. Several ongoing lawsuits and investigations mainly centered around accusations of misusing customer funds.
Among allegations – loans were provided to Alameda for risky trades using money from FTX users trusting the exchange as custodian. Transfers also occurred to affiliates without sufficient disclosures or controls around conflict of interest.
In December 2022, US prosecutors charged founder SBF with an eight-count criminal indictment for allowing illegal transfers to Alameda.
If successfully prosecuted, the counts could total up to 115 years in prison for SBF and other executives. Prosecutors highlighted the sheer scale of missing funds from FTX, with up to $8 billion of client assets vanished.
Market Price Update
Since the past few months, the crypto market capitalization has grown significantly; as of writing, it was $2.33 Trillion. The constant positivity in the crypto prices and market capitalization has pulled the market upwards.
The capitalization grew 121% in the past six months and 119% in the past 365 days. Bitcoin, the market pioneer, has reflected a growth of 138% in the past two quarters.
FTT, the native token of the FTX, has lost nearly 99% of its trading price; its highest trading price was $118.
In the past seven days, Dogwifhat (WIF) surged 335%, which makes it the leader of the list. Pepe (PEPE) has added 258% to its trading price in the same time frame, Floki (FLOKI) 244.73%, and Shiba Inu (SHIB) 130.40%.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
