Fraction Of Billion Dollars Recovered In FTX Bankruptcy
The firm tasked with locking down the assets of bankrupt cryptocurrency exchange FTX says it has successfully recovered and protected $740 million in assets so far, a fraction of the potential billions of dollars that will likely be missing in the future. company coffers.
The figures were released Wednesday in court documents by cryptocurrency custody firm BitGo, which FTX hired within hours of the company filing for bankruptcy on Nov. 11.
The greatest concern for the majority of FTX clients is that they won't ever see their cash from now onward. FTX went bankrupt because its former CEO Sam Bankman-Fried and his lieutenants used client assets to place bets in Bankman-Fried's trading company, Alameda Research. Bankman-Fried reportedly sought to secure more than $8 billion from new investors to repair the company's balance sheet.
The US $ 740 million figure is from November 16, and since then additional assets have been steadily recovered.
Assets recovered by BitGo are now locked up in what is called "cold storage" in South Dakota, which means they are cryptocurrencies sent to hard drives not connected to the internet. BitGo gives what is known as "qualified overseer" administrations under South Dakota State regulation. It is effectively the crypto equivalent of a financial trustee, which offers segregated accounts and other security services to lock down digital assets.
The recovered assets not only contain Bitcoin and Ethereum, but also a collection of minor cryptocurrencies that vary in popularity, such as the Shiba Inu coin.
California-based BitGo has a past filled with recuperating and getting resources. It was tasked with protecting assets after the Mt. Gox cryptocurrency exchange went bankrupt in 2014. The organization is additionally the overseer of resources held by the public authority of El Salvador.
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