FTX assets worth a fortune have been recovered after the crypto exchange’s collapse

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The company tasked with locking up the assets of failed cryptocurrency exchange FTX said it has so far managed to recover and secure $740 million in assets, a fraction of the potential billions of dollars likely missing from the company’s coffers.

The numbers were revealed Wednesday in court documents from cryptocurrency custody company BitGo, which FTX hired in the hours after the company filed for bankruptcy on Nov. 11.

The biggest concern for many of FTX’s clients 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 place bets on Bankman-Fried’s trading firm, Alameda Research. Bankman-Fried was reportedly seeking more than $8 billion from new investors to repair the company’s balance sheet.

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

The assets recovered by BitGo are now locked in what is known as “cold storage” in South Dakota, which means they are cryptocurrency stored on hard drives that are not connected to the Internet. BitGo provides what is known as “qualified custodian” services under South Dakota state law. It’s basically the crypto equivalent of the financial trustee, offering segregated accounts and other security services to lock up digital assets.

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

California-based BitGo has a track record of recovering and protecting assets. They were tasked with securing the assets after the Mt. Gox cryptocurrency exchange failed in 2014. The company is also the custodian of the assets held by the government of El Salvador.

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