Congressmen French Hill and Jason Smith respond to the latest developments on FTX founder Sam Bankman-Fried’s background in Evening Edit.
The company contracted to recover the assets of the failed cryptocurrency exchange, and FTX says it has managed to recover more than $740 million so far.
However, it is only a fraction of the billions potentially missing from the company’s coffers.
Custody firm BitGo was hired in the hours after FTX filed for bankruptcy on November 11th.
The recovered assets were disclosed in court filings on Wednesday.
FTX crumbles wipes clean billions while investors get away with CRYPTO
In this photo illustration, the stock trading chart for FTX Token (FTT) is shown on a smartphone screen. ((Photo by Rafael Henrique/SOPA Images/Sipa USA) No Use Germany./Reuters Photo)
The biggest concern for many FTX clients is that they will never see their money again.
CRYPTO FIRM FTX RAISED RED FLAGS LONG BEFORE THE CRYPTO: THE EXPERTS
FTX failed because its founder and former CEO Sam Bankman-Fried and his associates used clients’ assets to bet on FTX-related Alameda Research.
Board Chair Maxine Waters, D-Calif., right, and Ranking Member Patrick McHenry, RN.C. , to the left. Lawmakers plan to investigate the failure of FTX, the large cryptocurrency exchange that collapsed last week and filed for bankruptcy protection, leaving investors ((AP Photo/Andrew Harnik, File)/AP Newsroom)
Bankman-Fried was reportedly looking for upwards of $8 billion from new investors to overhaul the company’s balance sheet.
MIAMI-DADE DISTRICT COURT SUITS RIGHT TO RENAME MIAMI HEAT’S ARENA AFTER FTX CLOSE
The figure of $740 million is taken from November 16. BitGo estimates that the amount of recovered and secured assets has likely risen above $1 billion since that date.
The FTX Arena name is still visible where the Miami Heat basketball team plays. ((AP Photo/Marta Lavandier, File)/AP Newsroom)
The assets BitGo recovered are now locked in South Dakota in what’s known as “cold storage,” which means they’re cryptocurrencies stored on offline hard drives.
The recovered assets include not only Bitcoin and Ethereum, but also a range of minor cryptocurrencies that vary in popularity and value.
The Associated Press contributed to this report.
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