The cryptocurrency custodial company BitGo which has been working on the recovery of assets from the cryptocurrency exchange platform FTX in its recovery documents mentioned that they have been able to recover some assets, which worth approximately $740 million from the alienated resources pool to the FTX platform. The funds these recovery company has been able to get are considered as just a fraction of the amount of the total assets of the FTX platform.
BitGo Further mentioned that these recovered funds are just a fraction of all the potential billions which are missing from The coffers of the cryptocurrency exchange platform FTX. Investors in the cryptocurrency platform FTX have appointed the custodial company BitGo on November 18th this month to work on the possible recovery options for the FTX platform.
source : coindesk.com
The recovery company BitGo has mentioned that the biggest problem for all the retail investors and the users who poured their money into the FTX platform is that they would never be able to see all the investments they did into the FTX. Because all the former employees of FTX along with Sam Bankman used user and investor’s funds in the investments option of FTX’s sister company Alameda research. Alameda Research a sister company of FTX was a venture capital firm.
This company was not able to recover or get any profits from their investments in all of their invested business prospects. Because of all these issues, All the investments done by the FTX platform into Alameda Research were considered loss-making decisions.
What are the observations of recovery company BitGo in FTX case?
The authorities of BitGo mentioned that the former CEO of FTX was looking for approximately $ 8 billion as the next investment into the FTX platform to work on the balance sheet issue into the FTX platform at that moment.
The crypto assets which has been recorded by BitGo company are told to be stored in South Dakota in a form of cold storage. In the form of cold storage of Crypto, assets are stored in a physical hard drive and they are not connected to any source of the internet. BitGo is appointed as a qualified custodian by the investors into the FTX platform with the help of South Dakotan State law services.
In the form of a qualified custodian, the financial services are offered in a segregated account along with the security features for all the digital assets. The assets which have been required by BitGo are not only the major cryptocurrencies like Bitcoin and Lithium but also some minor cryptocurrencies like Shiba Inu coin.
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