Propose cash at the rate at the time of filing for bankruptcy

On the 16th, the asset management organization for the bankrupt cryptocurrency exchange FTX filed a proposal to complete the bankruptcy process with the U.S. state of Delaware bankruptcy court.

The value of the claims will be calculated based on the asset prices in November 2022, when FTX filed for bankruptcy. It also explained that it aims to maximize value for all creditors and distribute it efficiently.

In the case of virtual currencies, the plan is to convert the value into cash based on the exchange rate at the time of bankruptcy. For example, the price of Bitcoin (BTC) was approximately 2.4 million yen at the time of the bankruptcy filing, but as of the time of writing, it has risen to approximately 5.98 million yen.

connection: “Virtual currency will rise in 2024” even if Bitcoin spot ETF is not approved = Matrixport report

This proposal has not yet been approved by the court, and there is a possibility that various creditors may submit objections to the plan. The date for the next public hearing is not expected to be determined until 2024.

FTX plans to sell its investment trusts and other assets in order to distribute dollar-denominated assets to creditors. In late November, a bankruptcy court approved a proposed sale of approximately 124.5 billion yen ($874 million) worth of cryptocurrency investment trusts from Grayscale and Bitwise.

connection: FTX Estate can sell $870 million worth of crypto investment trusts, court approves

In November, former CEO Sam Bankman-Fried was found guilty in district court on all seven charges, including wire fraud, commodity fraud, and securities fraud.

connection: Sam, former CEO of virtual currency exchange FTX, found guilty on all seven charges.

Increase in assets under management of Galaxy Digital

In connection with the FTX bankruptcy process, Galaxy Digital, a major US cryptocurrency investment company led by Mike Novogratz, is increasing the amount of assets under management. The Financial Times reported.

This is mainly due to the fact that in August, FTX’s asset management organization selected the organization to manage a portion of the shares held by FTX. Galaxy Digital’s assets under management have tripled from about 242.1 billion yen ($1.7 billion) a year ago to about 754.9 billion yen ($5.3 billion) today.

Steve Kurtz, the company’s global head of asset management, said the company is also interested in acquiring assets from other bankrupt companies.

In December last year, Galaxy Digital also acquired GK8, a custody company owned by the bankrupt cryptocurrency lending company Celsius Network. The company said it would serve as a foundation for providing new services.

connection:Galaxy Digital acquires a company affiliated with Celsius

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