December 2, 2022

Bobbys Brane

Bobbys Brane – Business & Tech Blog

Galaxy Digital to cut majority exposure to crypto exchange FTX By Reuters

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© Reuters. FILE PHOTO: Mike Novogratz, Galaxy Digital founder, speaks during a Reuters investment summit in New York City, U.S., November 5, 2019. REUTERS/Lucas Jackson

(Reuters) – Crypto financial services company Galaxy Digital Holdings Ltd said on Wednesday it would cut its exposure to embattled crypto exchange FTX by $47.5 million.

Galaxy, founded by Mike Novogratz, disclosed it had a $76.8 million exposure to the company, a day after Binance said it was planning to buy smaller rival FTX.

Major cryptocurrencies fell after the announcement, as investors were left wondering if the financial instability at FTX could spread to other players in the industry.

Coinbase (NASDAQ:) Global Inc and issuer Circle Financial have reassured investors of minimal exposure to FTX.