We advised Galaxy Asset Management on the arrangement involving certain assets in the FTX bankruptcy estate

Davis Polk advised Galaxy Digital Capital Management LP (“Galaxy Asset Management”) on its engagement to provide investment management services with respect to certain digital assets of the bankruptcy estate of FTX Trading. This marks one of the first-ever appointments of an investment adviser to manage digital assets in a major crypto bankruptcy case.

On September 13, 2023, the U.S. Bankruptcy Court for the District of Delaware granted motions approving guidelines for the management and monetization of FTX’s digital asset portfolio and FTX’s entry into an investment services agreement with Galaxy Asset Management.

Galaxy Asset Management is an SEC-registered investment adviser, providing investors with access to the digital asset ecosystem via a diverse suite of institutional-grade investment vehicles that span passive, active and venture strategies. It is a subsidiary of Galaxy Digital Holdings LP, a digital asset and blockchain leader providing access to the growing digital economy. FTX once operated one of the largest cryptocurrency exchanges in the world and filed for bankruptcy in November 2022.

The joint Davis Polk financial institutions and restructuring team included partners Timothy Graulich and Gabriel D. Rosenberg, counsel Christopher Robertson and associates Dana Seesel Bayersdorfer, Max J. Linder and Leon Jiang. Partner Gregory S. Rowland and counsel Benjamin Milder provided investment management advice. Partner Zachary J. Zweihorn provided securities law and compliance advice. Counsel Erika D. White provided finance advice. Members of the Davis Polk team are based in the New York and Washington DC offices.

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