Galaxy-Digital CEO Michael Novogratz angry on FTX

Galaxy-Digital CEO Michael Novogratz angry on FTX

Galaxy Digital is entangled in the chaos that the cryptoma markets have hit in the past few days, where FTX was haunted by a liquidity crisis and Binance-CEO Changpeng Zhao revealed the intention of his company to buy the competing stock exchange.

The Galaxy partners have around $ 77 million in cash and digital assets at FTX, managers said during the company's conference conference on Wednesday. They added that the company has no engagement in FTX, the native token of FTX, or in Alameda Research, a commercial and risk capital investment company for digital assets founded by FTX CEO Sam Bankman-Fried.

CEO Michael Novogratz said that the company started "taking risks" on Sunday evening. Around $ 47.5 million are currently in the payment process, and he noticed that Galaxy was "a hopeful but cynical deposit".

"The good news is that it is 4 % of our capital and 2 % of our assets," he added. "So while it is burning, it is by no means so harmful."

Novogratz said that he was "angry" and "frustrated" about the latest situation around FTX, which in his opinion was seen as a good organization with close relationships with the supervisory authorities. Other industry players such as Three Arrows Capital, Voyager Digital and Celsius collapsed this year after the implosion of Terra's algorithmic stable coin.

"In a way, this is the year in which the bad news in crypto technology comes again and again," said the CEO.

"It reminds me that this is a very young and new industry and that part of the growth pain is to emerge the bad actors and excesses and to concentrate on something more trusting," he added.

Zhao tweeted on Tuesday that his stock exchange had signed a "non -binding" declaration of intent to complete FTX, and added that "FTX asked for our help" to cope with the liquidity crisis.

The tweet came after a sub-balance of the FTX sister company and the asset manager Alameda Research. by Coindesk last week showed that around 40 % of the company's assets were attributed to $ 14.6 billion FTT, the token that drives FTX trade.

alameda-CEO caroline ellison Allegations Sunday that the company was short of bankruptcy. Nevertheless, zhao tweeted He would liquidate the considerable FTS-stocks of his company. The price of FTT then fell and later ftx stopped the withdrawals.

Galaxy considers FTX problems to be harmful to the regulatory efforts of the industry

Novograms said that the crypto industry did bad work in self -regulation. According to FTX, the crypto regulation from Washington will probably be a slow process, since the SEC and others will inevitably examine how this happened.

Bankman-Fried presented possible standards of the crypto industry last month and suggested customer protection standards and a mechanism for audits to confirm that stable coins are adequately supported by Fiat.

"The painful thing is that Sam spent so much time in DC," said Novogratz. "It was not that what he said was crazy. It is only that if the messenger now looks like he had driven his ship into an iceberg ... it will only annoy the people with whom he spent time and slow down something."

Many crypto -related shares suffered a blow on Tuesday after Zhaos Tweet about the possible takeover of FTX, including Galaxy, which fell by about 17 %.

The Galaxy share price fell by more than 12 % on Wednesday at 10:00 a.m. The share has fallen by about 82 % in the previous course.

Galaxy reports Q3 results and layoffs

Galaxy managers said that the company had a net loss of $ 68 million in the third quarter, compared to a loss of $ 112 million and $ 555 million in the first or second quarter.

Despite the profitability in his trade department, Galaxy suffered non -realized losses from investments in his main business business due to lower ratings and, due to reduction in mining systems, had increased operating costs for his mining business.

The company retains $ 1.5 billion in liquidity, said executives, including $ 1 billion in cash.

Bloomberg last week that Galaxy digitally considered, his workforce at about To reduce 15 %.