The firm tasked with seizing the assets of the defunct cryptocurrency exchange FTX Trading reported that it had so far amassed $740 million in assets. The assets only make up a tiny portion of the billions of dollars that could be lacking from FTX’s bank accounts.
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BitGo And Its Operations
The sum was revealed in court documents by crypto custody firm BitGo. Hours following the firm’s insolvency filing earlier in the month, FTX appointed BitGo. As of November 16, $740 million was collected. According to BitGo, assets retrieved and secured since then have surpassed $1 billion.
The funds BitGo was able to retrieve are currently impounded in South Dakota. Stored in “cold storage,” which means digital currency is kept on disconnected hard drives. According to South Dakota legislation, BitGo offers services referred to as “accredited custodians.” In essence, it provides isolated accounts. It also offers protection to lock digital assets.
BitGo has a track record of reclaiming and protecting assets. After the 2014 collapse of the bitcoin exchange Mt. Gox, they were entrusted with safeguarding assets. The corporation is also looking after the state of El Salvador’s assets. For its operations, BitGo is compensated by FTX with a $5 million retainer and $100,000 monthly.
Insights On FTX’s Collapse
The collapse of FTX in little over a week has shocked the crypto community. For conceivable securities offenses, the firm and Bankman-Fried are under investigation. Early this month, amid growing worries about FTX’s stability, users withdrew approximately $5 billion in one day. The withdrawals created the cryptocurrency equivalent of a bank run for the company. Shortly after FTX was declared bankrupt, securities officials confiscated some of the assets.
Bankman-Fried and his associates lost FTX’s money by placing wagers in Alameda Research. Alameda is a trading company that was strongly aligned with FTX. Reports show Bankman-Fried sought up to $8 billion from new investors to balance the company’s books.
Several of FTX’s clients are concerned about whether or not they will be getting their funds back. Furthermore, many clients are unlikely to receive a payout. And if they will, they will probably wait for years to do so.
Sam Bankman-Fried’s Upcoming Event
Bankman-Fried posted that he will give a speech at a New York Times event on November 30th. He was originally supposed to attend the event. But as he comes under investigation, rumors have grown about his whereabouts. And even his possible travel plans.
Bankman-Fried didn’t say if he would be in attendance or attend by video call. An inquiry for more information wasn’t immediately asked by The New York Times.