FTX wants Galaxy Digital to stake, hedge and manage its crypto

FTX debtors want Mike Novogratz’s Galaxy to stake some assets

share

FTX wants to hire Galaxy to manage its crypto. 

The crypto exchange’s lawyers asked the court to authorize an Investment Services Agreement between FTX and Galaxy which would allow Galaxy to stake, hedge and sell FTX’s crypto.

FTX’s debtors claimed that Galaxy “proactively mitigating the risk of these volatile markets will best protect the value of the Debtors’ Digital Assets, thereby maximizing the return to creditors and promoting an equitable distribution of funds in a potential plan of reorganization.”

FTX filed for bankruptcy in 2022 after Binance pulled out of a buy-out deal for the exchange.

Further, FTX believes that Mike Novogratz’s Galaxy “expertise will be crucial in assessing the timing, trading venues and counterparties of potential transactions.”

According to court documents filed Wednesday, Galaxy will look to sell the assets for cash when it helps to limit market volatility exposure.

The document also submitted guidelines for sales, which include a weekly limit of $100 million, with the caveat that the court may increase the limit to $200 million, depending on the circumstances. The Debtors, if they decide to pursue sales of FTX (FTT), ether (ETH) or bitcoin (BTC), are required to provide 10 days’ notice.

Galaxy will hedge BTC and ETH, which “will provide a means to lessen the Debtors’ exposure to adverse price movements in Bitcoin and Ether prior to their sale.”

Through the contract, Galaxy would also be allowed to stake crypto.

According to the court filing, FTX debtors and Galaxy would be “authorized to utilize staking options available through their qualified custodians using their respective private validators if the Debtors determine in the reasonable exercise of their business judgment that such activities are in the best interests of their estates.”

“Staking assets into the proof-of-stake system is a way to earn passive interest on certain Digital Assets that would otherwise remain idle,” the documents continued. 


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

The network is at a “pivotal juncture,” Blockworks Research’s Marc-Thomas Arjoon said

article-image

Altcoin trade volume has returned to pre-FTX levels, but with a shrinking pool of market leaders

article-image

Solana Foundation’s former head of strategy proposes increasing the disinflation rate

article-image

With much of the bitcoin mining supply chain based in Asia, US-based operations now face higher equipment prices

article-image

Anticipating an economic downturn, venture firms may be less likely to invest

article-image

Trump’s tariffs may have potentially significant impacts on GDP, household spending and food prices — if they hold