As events continue to unfold following FTX’s collapse, some of the funds missing from the exchange’s accounts have been located and secured.
Shortly after its sudden demise, FTX hired digital asset custodial company BitGo to manage its accounts and assets. Now the custodian has recovered over $700 million worth of crypto assets for exchange.
$740 million in crypto recovered from FTX
According to a Wednesday submission in the United States Bankruptcy Court for the District of Delaware, $740 million in crypto was transferred to BitGo on Nov. 16, four days after FTX filed for bankruptcy.
“Initially, the average estimated monthly cost is expected to be approximately $100,000 based on approximately $740,000,000 in digital assets transferred into custody by November 16, 2022,” it said in the document.
Since then, other assets have been recovered and all transferred to cold storage in South Dakota.
Cold storage is a method of offline storage of cryptocurrencies on devices that are not connected to the Internet, such as B. Hard drives or hardware wallets.
BitGo has been recovering crypto assets since 2013 and has a rich track record of securing such assets. The recovered digital assets consist of BitcoinEthereum, and other smaller but popular cryptocurrencies like the Shiba Inu meme coin
FTX still knee deep in debt
Despite the fortune found, the amount is a mere drop compared to FTX’s total debt. As previously reported, former FTX CEO Sam Bankman-Fried (SBF) said investors that the struggling exchange needed $8 billion to fix its liquidity crisis a day before bankruptcy.
Notably, even after filing for bankruptcy, the number hasn’t changed, and worse, the clients’ assets are nowhere to be found. In addition, FTX has over a million creditors, owed the top 50 over $3 billion.
Bankruptcy attorney Steven Earl said it would take years, if not decades, to realize and distribute the funds tied up in FTX.
Source: Crypto News Deutsch