French Hill and Jason Smith, Congressmen, discuss the latest developments regarding Sam Bankman-Fried, founder of FTX.
According to the company that was contracted to recover assets from the failing cryptocurrency exchange FTX, it has so far recovered more than $740 Million.
It is however a small fraction of the billions of dollars that could be missing from the company’s coffers.
BitGo, a custodial company, was established shortly after FTX filed for Chapter 11 bankruptcy.
On Wednesday, the assets were made public in court filings.
This photo illustrates the stock trading graph for FTX Token (FTT), as seen on a smartphone screen. (Photo by Rafael Henrique/SOPA Images/Sipa USA.) No Use Germany. / Reuters Photos
Many customers of FTX are concerned that they won’t see their money ever again.
FTX was unable to succeed because the former CEO Sam Bankman Fried and his lieutenants used customer funds to place bets in Alameda Research, a closely related trading company.
Maxine Waters (D-Calif.) is the Chairwoman, while Patrick McHenry (R-N.C.), is the Ranking Member. Lawmakers will investigate the collapse of FTX, a large crypto exchange, and file for bankruptcy protection. Investors are left with a (AP Photo/Andrew Harnik; File) / AP Newsroom
Bankman-Fried was reported to be looking for new investors in excess of $8 billion to fix the company’s balance sheets.
Nov. 16 is the date that $740 million was calculated. BitGo believes that the value of secured and recovered assets has increased to more than $1 billion since Nov. 16.
You can still see the FTX Arena name where the Miami Heat basketball team plays. ((AP Photo/Marta Lavandier, File) / AP Newsroom)
BitGo has now secured the assets it recovered in South Dakota as “cold Storage,” which is a storage of cryptocurrencies on hard drives that are not connected to the internet.
Not only did the assets include bitcoin and ethereum but also a selection of minor cryptocurrencies that are popular and have varying values.