A fortune in FTX assets recovered after the cryptocurrency exchange crash

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The company tasked with shutting down the assets of failed cryptocurrency exchange FTX said they have so far managed to recover and secure $740 million in assets, a fraction of the potential billions of dollars lost from the company’s coffers.

The numbers were disclosed in court filings on Wednesday by BitGo, a cryptocurrency storage company that FTX hired hours after the company filed for bankruptcy on Nov. 11.

The biggest worry for many FTX customers is that they will never see their money again. FTX failed because its founder and former CEO Sam Bankman-Fried and his lieutenants used client assets to make bets at Bankman-Fried’s trading firm Alameda Research. Bankman-Fried is reportedly seeking more than $8 billion from new investors to fix the company’s balance sheet.

The $740 million figure is as of November 16, and additional assets have been steadily recovered since then.

The assets recovered by BitGo are now locked away in South Dakota in what is known as “cold storage,” meaning cryptocurrencies are stored on hard drives that are not connected to the internet. BitGo provides what is known as a “qualified custodian” under South Dakotan state law. It’s essentially the cryptocurrency equivalent of a financial fiduciary, offering segregated accounts and other security services to lock up digital assets.

Recoverable assets include not only Bitcoin and Ethereum, but also a small collection of popular cryptocurrencies such as the Shiba Inu coin.

Based in California, BitGo has a history of asset recovery and security. Mt. After the Gox cryptocurrency exchange failed in 2014, they were tasked with securing the assets. The company is also the custodian of assets held by the government of El Salvador.

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