Crypto asset manager Galaxy Digital has revealed that it has tens of millions of dollars worth of exposure to embattled crypto exchange FTX.
In a new quarterly financial update, Galaxy Digital says it has an exposure of about $76.8 million of cash and digital assets to FTX, $47.5 million of which it is currently attempting to withdraw.
“Update on Exposure to FTX: On November 8, 2022, FTX, a digital asset exchange on which the Partnership holds cash and digital assets, announced that it entered into a non-binding arrangement with Binance to provide liquidity.
As of the date of this filing, the Partnership has an exposure of approximately $76.8 million of cash and digital assets to FTX, of which $47.5 million is currently in the withdrawal process.”
At a recent company earnings call, Galaxy Digital CEO Mike Novogratz says that the tentative agreement between Binance and FTX marks a pivot for the crypto industry.
“This is a very young and new industry and part of the growing pains is weeding out the bad actors, the excesses, and pivoting towards something that’s more trusted.
We’ve had two, three, four episodes in the last 12 months that have really dented the momentum of this base… Galaxy has a role to play and [a] very good role to play as a strong, transparent, more risk-managed focused institution.”
Galaxy Digital’s earnings report also unveils a comprehensive net loss of $68.1 million for Q3 2022. In the prior year period, the firm posted a $517.9 million gain.
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