FTX Exchange, which is currently undergoing bankruptcy proceedings, has issued a warning to the public regarding its authorized investment manager. In a post on X social platform, FTX clarified that the sale of digital assets by FTX Debtors, as mandated by the bankruptcy court, is exclusively managed by Galaxy Asset Management, the authorized investment manager. FTX also highlighted that there are unauthorized third parties attempting to solicit bids on behalf of the FTX Debtors.
Furthermore, FTX explained that if the FTX Debtors sell locked digital assets, the terms and conditions governing the unlocking of these assets will remain unchanged. The bankrupt exchange has been actively working on reorganizing and repaying its creditors, and it has managed to recover $7 billion worth of assets, which will be used to repay former customers.
On February 22, FTX received approval from the United States Bankruptcy Court for the District of Delaware to sell its stake of over $1 billion in the artificial intelligence (AI) firm Anthropic. This decision was made following a motion filed by FTX to sell its 7.84% Anthropic stake. FTX had initially invested around $530 million into the AI startup in April 2022, before experiencing financial difficulties and filing for Chapter 11 bankruptcy in November of the same year.
In December 2023, FTX debtors proposed that claimants be reimbursed based on the prices of crypto assets at the time of the bankruptcy. On the other hand, FTX creditors suggested repaying crypto holdings “in kind.” However, Judge John Dorsey sided with the debtors in a ruling on January 31, stating that the law was clear on the matter.
Former FTX CEO Sam Bankman-Fried was found guilty of seven charges in his criminal trial on November 3, 2023. These charges include wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy. Bankman-Fried is set to be sentenced on March 28, with a maximum prison sentence of 110 years.
Given the collapse of FTX, many are questioning the trustworthiness of crypto exchanges in general.