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$740 million in crypto assets recovered in FTX bankruptcy

The company tasked with liquidating the assets of failed cryptocurrency exchange FTX Trading said it has so far recovered $740 million in assets, a fraction of the potentially billions of dollars likely missing from FTX’s coffers.

Cryptocurrency custodial company BitGo revealed this figure in a court filing on Wednesday. FTX to BitGo The company declared bankruptcy earlier this month,

The biggest concern for many FTX customers is whether they will ever see the money they invested on the platform again. Experts tell CBS MoneyWatch that customers will likely Have to wait years to get your money backWhile many people are never able to recover the money.

FTX failed after its founder and former CEO, Sam Bankman-Fried, and his associates used client assets to hedge bets in Bankman-Fried’s trading firm, Alameda Research. The $740 million figure is from November 16, and additional assets have been steadily recovered since then.

The bankruptcy of FTX has shaken the crypto world as it has seen one of the largest exchanges crumble in about a week. The company and Bankman-Fried are under investigation in the US and abroad for possible securities violations. 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.

Regulators in California and Texas said they are also investigating FTX.


FTX Crypto Exchange Bankruptcy Sends Shockwaves Throughout Market

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The problems facing FTX came to the fore earlier this month when Bankman-Fried told a group of investors that the company needed about $8 billion to back up its users’ crypto assets. The company experienced a crypto version of a bank run earlier this month when users withdrew 5 billion dollars a day amid growing concerns about the solvency of FTX.

Bankman-Fried Tweeted Wednesday that he plans to speak at a New York Times event on Nov. 30.

The assets recovered by BitGo are now in what is known as “cold storage” in South Dakota, meaning cryptocurrency is stored on hard drives that are not connected to the internet. BitGo provides what are known as “qualified custodian” services under South Dakotan state law.

The recovered assets not only include bitcoin and ethereum, but also a collection of smaller cryptocurrencies that vary in popularity, such as the Shiba Inu coin.

California-based BitGo has a history of recovering and securing assets. He was tasked with securing assets after the 2014 failure of cryptocurrency exchange Mt Gox. The company is also the custodian of assets held by the El Salvadoran government.

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