Defunct FTX signed a custodial services agreement with BitGo, and the company is tasked with securing the assets of the failed cryptocurrency exchange, as it recovered and secured $740 million in assets.
Acting CEO John Ray III chose BitGo to take custody of the crypto exchange’s assets during the bankruptcy proceedings. The $740 million figure is from November 16, and the assets recovered by BitGo are now in cold storage.
Although this is only a fraction of the company’s potential billion-dollar assets, BitGo included this in the court proceedings document.
Mike Belshe, the co-founder of BitGo, stated, “BitGo’s mission is to “deliver trust in digital assets”–and crypto needs that more than ever. By helping in this case, we intend to do our part to restore trust to our industry.”
“When you break down FTX subsidiaries, the ones that used BitGo products are solvent and safe. The ones that didn’t aren’t.”
BitGo is a major player in the cryptocurrency custody sector, holding assets on behalf of numerous institutional investors, banks, and exchanges. It is well-known for holding the Mt. Gox Bitcoin, which was hacked in 2014, ceased trading, and declared bankruptcy.
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