BitGo to take custody of FTX assets in bankruptcy procedure

Hull Invest

Crypto custodian BitGo has been named as the official custodian to protect the remaining funds of FTX. Acting CEO John Ray III has selected BitGo to manage the cryptocurrency exchange’s assets during bankruptcy proceedings.

FTX filed a motion to acquire a custodian in connection with its bankruptcy proceedings on November 23. A hearing to confirm the appointment is scheduled for his December 16th. BitGo co-founder Mike Belshe commented:

BitGo’s mission is to “bring trust to digital assets” and cryptocurrencies need it more than ever. By backing this case, we will do our part to restore trust in the industry. ”

Further, Belshe said: What didn’t, isn’t.

BitGo Custody Service

BitGo is one of the major players in the crypto custody sector holding assets on behalf of many institutional investors, banks and crypto exchanges.Clients include Panterra Capital, Swissborg, Coinjar, Ripple, Nexo, and Many other.

BitGo offers not only custody services, but also trading, staking, wallet services, portfolio management and bitcoin payments. Additionally, we provide custody services for over 35% of all cryptocurrency exchanges.

It also holds Mt. Gox Bitcoin, which was hacked, stopped trading and filed for bankruptcy in 2014. The creditor has chosen his BitGo as sole custodian of the Mt. Gox assets. Bitcoins are held on behalf of customers who have locked their Bitcoins on exchanges. This is similar to the situation currently underway with FTX.

BitGo co-founder has spoken strongly about former FTX CEO Sam Bankman-Fried.

“SBF has committed financial fraud. This is not a crypto problem, it is a market structure problem. Trading, funding and custody must be different. It’s time to start making it happen for the benefit of cryptocurrencies.”

crypto slate Amidst the fear, uncertainty and doubt that has swept the crypto industry, I spoke with someone close to the company about the situation of cryptocurrency managers.

The company also has a “qualified custody” license, meaning that the client’s assets are “bankruptcy remote”. The source said, “Even if BitGo burns out … it works like a bank … it doesn’t get mixed up or moved unless you, the owner, decide where it goes.”

comments shared crypto slate Added from Berche,

“SBF has proven that there is no such thing as a ‘safe’ conflict of interest. Trading, funding and custody should be different. BitGo has been advocating for it for years and it’s time to start making it happen for the benefit of cryptocurrencies. ”

Not all custody rights are created equal.

BitGo is licensed in South Dakota, New York, Switzerland, and Germany. Those familiar with the matter

“Not all custody rights are created equal. No other peer does what BitGo does today.”

They said their qualified custodian status, multiple licenses, diligent internal risk management, and lack of “conflicts of interest” made “BitGo one of the safest and most reliable custodians for any institution.” I was.

As a further sign of approval, BitGo, the wallet custodian of El Salvador, recently confirmed its partnership with Nike in connection with its new NFT initiative.

Regarding the current market environment, the source asserted that “BitGo has a very healthy balance sheet.” However, according to his recent Forbes article, BitGo was seeking investment amid market turmoil and a failed acquisition from Galaxy.

of crypto slate Sources confirmed that the reason the Galaxy deal fell apart was solely due to the SEC’s decision not to allow Galaxy to list on the New York Stock Exchange. It had nothing to do with BitGo’s business practices. They further stated that “Galaxy is still an investor in BitGo and has access to all financial information.”

“The truth of the matter is that as we are BitGo, we are no longer in talks with Galaxy and are open to pursuing other opportunities.

custody for retail

In an exciting announcement for non-institutional investors, a source confirmed that “BitGo is looking to expand its operations to make the product available to investors under 1 BTC.”

Custody services of a BitGo nature are generally inaccessible to the general public. Therefore, the news that BitGo has launched an institutional-level custody service for retail cryptocurrency holders will be welcomed by those whose faith has been shaken by recent events.

Update 11pm GMT: Another document filed by FTX called for a motion to pay up to $8.5 million to “significant vendors.”

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