FTX Issues Important Warning To Caution Against Bid Solicitation

Godfrey Benjamin
March 2, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Highlights

  • FTX has warned its creditors against unauthorized bid solicitors
  • The trading volume is keeping its creditors aware of possible exploit channels
  • The FTX fund repayment still plausible with Anthropic shares sale

As bankrupt crypto trading platform FTX Derivatives Exchange gets ready to fulfill its obligations to creditors who were affected by its implosion in 2022, it has issued a warning, notifying the public of its only authorized investment manager.

Advertisement
Advertisement

FTX Confirms Its Authorized Investment Asset Manager

As its first monthly message to its community, FTX took to X to inform its creditors that the FTX Debtors’ sale of Digital Assets under a bankruptcy court order, is exclusively under the purview of Galaxy Asset Management, the court-authorized investment manager. As such, the team would only accept any offers to sell or solicitation of offers to buy that are made only by Galaxy Asset Management.

The firm advised interested parties who are institutional buyers or otherwise in compliance with applicable law are therefore advised to take note. 

The firm revealed that some unauthorized third parties are already making moves to bid on behalf of certain FTX Debtors. It is obvious that the FTX team is also ready for the occurrence of such cases and may have put structures in place to cater to any form of exploitation.

In addition, FTX explained that in the case where locked digital assets are sold by the FTX Debtors, the terms and conditions governing the schedule for unlocking the holdings would still stand. 

Advertisement
Advertisement

Attempt to Claw In All Assets Intensifies

Noteworthy, in the last few months FTX has been on a mission to restructure and repay its creditors. It has retrieved up to $7 billion in assets with which it planned to repay its customers. A week ago, FTX received approval from the Supreme Bankruptcy Court of the United States District Court for the District of Delaware to sell off its over $1 billion stake in AI firm Anthropic.

It is strongly expected that the sales of the stake in the AI firm will go a long way to alleviate the financial tension hovering around FTX. If it is successful, it may lead to the full repayment of FTX customers’ claims as well as that of its creditors.

Still preparing for the repayment, the trading platform has been in communication with different government agencies, agreeing with them to commit to holding off on pursuing collection of about $9 billion in claims until after customers have been fully refunded.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.