BitGo declined Alameda’s attempt to redeem 3,000 WBTC

Hull Invest

BitGo CEO Mike Belshe revealed in a Twitter space on Dec. 14 that the company rejected Alameda Research’s request to redeem 3,000 wrapped Bitcoins (WBTC) days before bankruptcy.

BitGo declined Alameda

Belshe said BitGo denied the request after an Alameda representative who contacted his company failed the security verification process.

He added that BitGo was familiar with representatives from all of the companies that own WBTC, and that this Alameda representative was not one the custodian had previously interacted with.

The person was also unfamiliar with the barn address, where WBTC was sent before BTC was released.

For these reasons, BitGo has paused the process to obtain clarification from the trading company. “While we put it on hold and waited for those issues to be addressed, they [Alameda] It went bankrupt,” he added.

on-chain data indicates that the redemption commenced on November 9, two days before FTX declared bankruptcy, and the transaction is still pending.

Alameda has already sent 3000 WBTC to the write address, but BitGo has yet to approve a redemption request to trigger the release.

This means BitGo holds more BTC than there is currently in circulation.this is Dashboard It shows that there are 199,238 WBTC for 202,255 BTC in storage.

Belshe disclosed information to highlight BitGo’s safety, but it also shows FTX and Alameda’s desperate attempts to restore liquidity on the exchange’s final day.

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