FTX Issues Warning on Unauthorized Bid Solicitations Amid Bankruptcy Proceedings

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As FTX Derivatives Exchange is gradually fulfilling its bankruptcy proceedings and its obligations to affected creditors, the firm has issued a cautionary notice, highlighting its exclusive partnership with authorized investment manager Galaxy Asset Management. 

The warning emphasizes the importance of dealing solely with the authorized manager amidst attempts by non-authorized entities to solicit bids on behalf of FTX Derivatives Exchange.

In a series of posts on social media platform X, FTX has underscored Galaxy Asset Management as its exclusive investment manager authorized by the bankruptcy court. The warning explicitly states that Galaxy Asset Management will exclusively handle any offers or solicitations for bids. Non-authorized third parties attempting to engage in these activities are cautioned against.

In its’ post, the firm writes, “Any offers to sell or solicitation of offers to buy would only be made by Galaxy Asset Management to interested parties who are institutional buyers or otherwise in compliance with applicable law.”

FTX has been actively restructuring recently, striving to recover and repay its creditors. With the retrieval of up to $7 billion in assets, FTX aims to fulfil its commitment to repay customers. 

The recent approval from the Supreme Bankruptcy Court to shift FTX’s over $1 billion stake in AI firm Anthropic is seen as a significant move that could alleviate FTX’s financial burden. A successful stake sale can potentially complete both the repayment of customer claims and creditor obligations.

The stake sale in Anthropic is anticipated to ease the financial strain on FTX significantly. A successful transaction may pave the way for the full repayment of FTX customers’ and creditors’ claims.

In preparation for repayment, FTX has engaged in dialogues with various government agencies. An agreement has been reached to temporarily defer the pursuit of approximately $9 billion in claims by these agencies until after customers have been fully refunded.