So far in the FTX Bankruptcy Case, $740 Millions in Crypto Assets Got Recovered, Held in ‘Cold Storage’

Reasons for FTX Failure –

It is understood as the major reason for FTX failure, that founder and former CEO Sam Bankman-Fried and his lieutenants used customers’ assets to make bets in FTX’s closely related trading firm, Alameda Research. The major worry for many FTX’s customers is they may never see their money again.

Bankman-Fried was reportedly looking for upwards of $8 billion from new investors to repair the company’s balance sheet. The $740 million figure is from BitGo estimates, the amount of recovered and secured assets have likely risen above $1 billion.

The recovered asset has been kept in ‘cold storage’ –

The company locking down the assets of the failed crypto exchange FTX in cold storage, says that it has managed to recover and secure $740 million in assets so far. A fraction of the potentially billions of dollars is likely missing from the company’s coffers.

The numbers were disclosed on Wednesday in court filings by FTX, which hired the crypto custodial company BitGo hours after FTX filed for bankruptcy on. The assets recovered by BitGo are now locked in South Dakota in “cold storage,” which means they’re crypto assets stored on hard drives not connected to the internet. To keep it safe and secure.

Information of the assets recovered –

The assets recovered include bitcoin BTCUSD, 1.14%, and Ethereum ETHUSD, 2.84%. it also includes a collection of minor crypto assets that vary in popularity and value, such as the Shiba Inu coin SHIBUSD, 0.67%.

BitGo the asset holder –

BitGo provides what is known as “qualified custodian” services under South Dakota law. It’s basically the crypto equivalent of a financial fiduciary, offering segregated accounts and other security services to lock down digital assets.

California-based BitGo has a history of recovering and securing assets. The company was tasked with securing assets after the crypto exchange Mt. Gox failed in 2014. It is also the custodian for the assets held by the government of El Salvador as part of that country’s experiment in using bitcoin as legal tender.