FTX wants to pay back creditors in cold hard cash, in lieu of crypto, and the ailing firm has asked Mike Novogratz’s Galaxy Digital to help get it done, according to a late Wednesday court filing.
FTX, which declared bankruptcy in November, said in an April filing that it held $3.4 billion in crypto, but it previously made clear that it wants to turn those assets into cash before distributing them. The Wednesday filing said the company, led by caretaker CEO John J. Ray III, wants to enlist Galaxy to help it “enter into hedging and staking arrangements,” which it believes will help it limit the assets’ loss of value and maximize what can be paid back to creditors. The request to hire Galaxy must be approved by the bankruptcy court.
