The company tasked with locking down the assets of failed cryptocurrency exchange FTX Trading said it has so far recovered $740 million in assets, potentially a fraction of the billions of dollars missing from FTX’s coffers. Is.
Cryptocurrency custody company BitGo disclosed the data in court on Wednesday. Filing. FTX hired BitGo hours later. .
The biggest worry for many FTX users is whether they will ever see the money invested on the platform again. Consumers are likely, experts told CBS MoneyWatch.while many never recover the funds.
FTX collapsed after its founder and former CEO, Sam Bankman-Fried, and his lieutenants used customer assets to make bets at Bankman-Fried’s trading firm, Alameda Research. The $740 million figure is from November 16, and additional assets have been continuously recovered since then.
The crypto world has been rocked by the bankruptcy of FTX as it saw one of the largest exchanges collapse. An investigation is underway in the United States. and for potential securities violations abroad. Securities regulators in the Bahamas – where FTX is based – seized some of the company’s assets days after FTX filed for bankruptcy in the US.The company and the bank are Freudian.
Regulators in California and Texas said they are also investigating FTX.
The problems facing FTX came to light earlier this month when Bankman-Fried told a group of investors that the company needed about $8 billion to back up its customers’ crypto assets. The company tested a crypto version of the bank it launched earlier this month after customers backtracked.Amid growing concerns about FTX’s solvency.
Bankman Freud Tweeted on Wednesday that he plans to speak at a New York Times event on Nov. 30.
The assets exported by BitGo are now in what is known as “cold storage” in South Dakota, which means that the cryptocurrency is stored on hard drives that are not connected to the Internet. BitGo provides what is known as a “qualified custodian” under South Dakota state law.
Assets exported include not only Bitcoin and Ethereum, but also a collection of minor cryptocurrencies that vary in popularity, such as Sheba Innocoin.
California-based BitGo has a history of recovering and securing assets. In 2014, cryptocurrency exchange Mt. Gox was tasked with securing the assets after it failed. The company is also the custodian of assets held by the government of El Salvador.