Tag: FTX

FTX crypto exchange reports data breach involving claims agent Kroll

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Defunct crypto exchange FTX has announced a cybersecurity breach involving its bankruptcy case claims agent, Kroll, in which limited, non-sensitive customer data of specific claimants was exposed. FTX said it is actively overseeing the situation, assuring that account passwords, systems and funds remain unaffected. The struggling crypto exchange utilized the X platform on Aug. 25 to notify its customers, creditors and the public about a cybersecurity breach involving its claims agent Kroll. The breach has resulted in the exposure of non-sensitive customer data from specific claimants linked to the ongoing…

Embattled Crypto Exchange FTX Hires Billionaire Mike Novogratz’s Galaxy Digital To Manage Recovered Crypto

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Troubled crypto exchange FTX is hiring a prominent crypto asset management firm to handle its recovered digital assets. In a new court filing, the bankrupt crypto exchange is seeking authorization for billionaire Mike Novogratz’s Galaxy Digital to take over the management of its recovered virtual currencies as a part of its restructuring process. “The Debtors seek authorization for FTX Trading Ltd. to enter into an Investment Services Agreement with Galaxy Digital Capital Management and to perform its obligations thereunder. The Debtors selected Galaxy Asset Management as an investment adviser based…

Is this exchange the next FTX?

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The blockchain industry has been revolutionary, to say the least. In the last three years, the crypto market has affected and changed lives positively — mine included. And this is why I am a massive advocate of cryptocurrencies and their power to give anyone financial freedom. Perhaps that is why MicroStrategy CEO Michael Saylor’s quote calling Bitcoin (BTC) “digital gold” resonates with me.  As an industry still in its nascent stages, I have had my fair share of unfortunate events happen to me, but none as bad as what I’ve…

FTX engages Galaxy Digital to oversee, sell, and hedge its crypto assets

Bankrupt exchange FTX wants to hire Mike Novogratz’s Galaxy to assist with selling, staking, and hedging its crypto assets. The proposed agreement would see Galaxy managing and trading certain digital assets owned by FTX to convert them into fiat currency or stablecoins. Additionally, Galaxy would be responsible for hedging FTX’s exposure to volatile cryptocurrencies such as Bitcoin (BTC) and Ether (ETH). Galaxy’s compensation would consist of a monthly management fee divided into a hedging fee based on the average net asset value of the assets being hedged and a liquidation fee calculated…

FTX files motion for Galaxy Digital to manage recovered crypto holdings

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Mike Novogratz’s digital asset management firm Galaxy Digital looks set to manage the remaining cryptocurrency holdings of bankrupt cryptocurrency exchange FTX. On Aug. 24, the company filed a motion with the United States District Court for the District of Delaware seeking authorization and approval of guidelines for the sale of digital assets recovered during ongoing bankruptcy proceedings. The filing outlines FTX’s requests and plans to transfer some $7 billion worth of recovered cryptocurrency tokens under Galaxy Digital’s management following the exchange’s collapse in 2022. Related: FTX​ releases restructuring plan, hints at rebooted offshore exchange FTX…

FTX to Hire Galaxy Digital Capital Management to Help Sell Off $3B in Crypto

FTX is hoping interest on its crypto pile will add to the stock it can distribute to customers who are still waiting for their money back. The company, now run by restructuring expert John J. Ray III, worries that selling all in one go would cause the price to plummet, to the benefit of short sellers and other market participants. It’s turning to market experts to figure out how best to avoid that, for example via weekly sales limits. Source

Former FTX boss plans to blame prior legal counsel ahead of October hearing

Former FTX CEO, Sam Bankman-Fried, is set to face trial in October, with his defense team preparing to spotlight the role of previous legal counsel in key decisions made during his tenure. Sam Bankman-Fried, the former CEO of the now-bankrupt crypto exchange FTX, is set to go on trial in October, and new defense strategies have emerged. Bankman-Fried lawyers are gearing up to potentially place a portion of the blame on the previous legal counsel affiliated with the failed exchange. According to recent reports, the defense team intends to present…

more firms exploring blockchain despite FTX setback

A recent Citi report provides an in-depth analysis of the growth, challenges, and regional variations in the adoption of digital assets and distributed ledger technology (DLT) over the past year. On Aug. 23, Citi presented a comprehensive analysis of the developments and challenges faced by the digital assets and distributed ledger technology (DLT) sector. Despite the setbacks of 2022, particularly for some crypto firms like FTX, the research offers an optimistic perspective on the evolution of DLT and digital assets. The report points out that a larger number of companies…

Sam Bankman-Fried’s lawyers argue previous FTX legal team led him to act ‘in good faith’

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Lawyers currently representing Sam Bankman-Fried, or SBF, for his criminal case in the United States plan to elicit evidence the former CEO acted “in good faith” on advice of previous counsel in regard to his alleged actions at FTX and Alameda Research. In an Aug. 23 filing in the U.S. District Court for the Southern District of New York, SBF’s legal team said Fenwick & West, the law firm that formerly represented cryptocurrency exchange FTX, provided certain legal advice to the firm of which Bankman-Fried had been aware. According to…