FTX Asks Court To Let BitGo Safeguard Its $740 Million Of Remaining Digital Assets

On November 13, just a day after the suspected FTX hack, cryptocurrency custody platform BitGo struck an agreement to “look after” the exchange’s remaining assets

According to the terms of the agreement, FTX agreed to pay BitGo a $5 million fee in advance. Custody will impose a monthly FTX fee equivalent to 0.015% of the holdings’ average US dollar value. For example, FTX is expected to cost around $100,000 USD each month based on the first asset transfer of 740 million USD on November 16.

Before transferring assets, FTX must check and monitor cash flow management. However, FTX has remained silent in court regarding the delicate scenario of fraud and attacks on the exchange. While the exchange will continue to investigate and attempt to recover the stolen cash, keep in mind that this may result in an increase in the number of assets in custody.

BitGo co-founder Mike Belshe commented on the slightly tense handshake:

“It’s past time to get serious about putting an end to man-made disasters in the crypto business.” When you divide FTX into smaller clusters, you can see that the clusters that use the BItGo product are safe and secure, and are not tainted by the present crash.”

The custody agreement will be evaluated by the court, and a decision will be issued on December 7. The next hearing will be held on December 16 in the United States Bankruptcy Court for the District of Delaware.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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