FTX Asks Court to Let BitGo Safeguard Its Assets During Bankruptcy

Nov 24,2022
KingData News: FTX has agreed to hire BitGo to hold its $740 million of remaining digital assets in cold wallets. FTX notified a federal judge that it wants BitGo to safeguard its remaining digital assets as bankruptcy proceedings play out. A custodial services agreement with BitGo was signed Nov. 13, approximately one day after someone completed “unauthorized transfers” draining $372 million worth of assets from FTX accounts. FTX has agreed to pay a $5 million upfront fee to BitGo, and the company will charge FTX a monthly fee equal to the average U.S. dollar value of the digital assets held, multiplied by 1.5 basis points. In their filing announcing the deal, lawyers for the company estimate it will cost FTX approximately $100,000 per month, based on the initial transfer of $740 million worth of assets to BitGo as of Nov. 16.
A financial document disclosed in the media indicates that SBF's Alameda Research has a capital debt situation, with nearly half of its holdings related to FTT and Solana. On November 6, 2022, CZ stated that due to recent revelations, Binance will sell all FTT on its books. This indicator broadcasts updates on FTX-related events.