FTX collapse: $740m in BTC, ETH and SHIB recovered and locked in South Dakota
BitGo – the company tasked with recovering assets lost in the implosion of cryptocurrency exchange FTX – disclosed it had already recovered $740m in a court document filed on Wednesday.
The $740m figure was correct as of 16 November, but more assets have been recouped since then with the total of redeemed assets now estimated to be in excess of $1bn.
The disclosed amount, which is in bitcoin (BTC), ether (ETH), and shiba inu (SHIB), is stored in cold storage – offline hardware wallets – in South Dakota, where the California-based BitGo is licensed to act as custodian of FTX’s digital assets.
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FTX, along with around 130 affiliated companies, filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware on 11 November 2022.
It has since been disclosed that FTX has more than a million creditors, and owes an $3.1bn to its 50 largest claimants.
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Recovery fees
BitGo disclosed that it had charged FTX an upfront $5m fee for its custody services and estimated that its monthly fee would be $100,000 for now, but warned this could increase as the amount of digital assets held in custody rises.
“Initially, the average estimated monthly cost is expected to equal approximately $100,000, based on approximately $740m in value of digital assets that had been transferred to the custodian’s custody as of 16 November, 2022,” said BitGo in the court filing.
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