• Financially distressed FTX crypto exchange partners with Galaxy for consulting, aiming to hedge and liquidate crypto assets.
• Bankman-Fried alleges poor jail conditions, vegan diet neglect, lack of ADHD, and depression medication at the Metropolitan Detention Center.

In a recent update, financially distressed crypto exchange FTX has engaged the expertise of American cryptocurrency company Galaxy as a consultant. This move, outlined in court documents filed on Wednesday, aims to help FTX hedge and liquidate its cryptocurrency assets. According to information from a Reuters article, the court filing disclosed that FTX’s primary focus is to use hedging strategies involving Bitcoin (BTC) and Ethereum (ETH) to reduce risks linked to unfavorable price changes before proceeding with the asset sale.

FTX intends to diminish its vulnerability to market instability and potential financial setbacks by implementing these actions. This, in turn, aims to establish a more favorable setting for the eventual liquidation of its cryptocurrency holdings.

FTX Charts a Clear Course Toward Recovery

As per the report, Galaxy, spearheaded by billionaire investor Mike Novogratz, will provide direction regarding hedging strategies and assist FTX in engaging in crypto staking. Staking involves lending cryptocurrency to validate blockchain transactions and earn interest on the lent assets.

Shining a light on the proficiency of Galaxy Asset Management, the investment advisory division of Galaxy, the court submission underlined their extensive expertise in managing and trading digital assets.

As reported by Reuters, this aligns with the sorts of transactions and investment goals envisioned for FTX’s ongoing reorganization. Conversely, in a recent court session in Wilmington, Delaware, FTX’s attorney Brian Glueckstein mentioned that the company is on course to finalize its bankruptcy proceedings by the second quarter of 2024. A court-appointed committee representing FTX’s creditors prompted this update by requesting expedited mediation.

FTX’s collaboration with Galaxy as an advisor signifies a significant stride in the cryptocurrency exchange’s endeavors to recover from bankruptcy and manage its cryptocurrency assets competently. Through leveraging Galaxy’s proficiency in hedging and staking, FTX strives to curtail risk and optimize the value of its holdings.

Bankman-Fried’s Complaints About Substandard Jail Conditions

According to Reuters, bankman-Fried, the founder of the troubled cryptocurrency exchange FTX, alleges experiencing inadequate conditions while detained in federal jail awaiting his fraud trial. Mark Cohen, his legal representative, conveyed to the court that Bankman-Fried’s choice for a vegan diet has not been catered to at the Metropolitan Detention Center in Brooklyn, where he is currently confined.

Cohen contended that the jail’s failure to supply required medication, including Adderall for attention deficit hyperactivity disorder (ADHD) and Emsam for depression, has hindered Bankman-Fried’s effective engagement in preparing for his defense. This situation has led him to predominantly rely on bread and water due to his adherence to veganism.

Responding to Bankman-Fried’s grievances, U.S. District Judge Lewis Kaplan, who will oversee the trial, directed the jail to provide him with the prescribed medications. Judge Sarah Netburn, who presided over the recent hearing, expressed her intention to address the medication concerns with the U.S. Justice Department’s Bureau of Prisons, the entity responsible for the facility.

While the availability of vegan food at the jail remains uncertain, the Bureau of Prisons asserted that the facility offers nutritionally sufficient meals adhering to national menu requirements. Bankman-Fried’s situation has drawn considerable interest owing to the prominent status of FTX and the accusations against him. The downfall of FTX and the ensuing legal actions hold noteworthy consequences for the cryptocurrency sector.

Caroline Ellison, Bankman-Fried’s ex-partner and fellow collaborator, who held the position of Alameda’s chief executive, is one of three former close associates who have confessed their guilt and committed to providing testimony against him during the trial.

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