Bitcoin News

BitGo to take custody of FTX assets in bankruptcy procedure

Haru Invest

Crypto custodian BitGo has been nominated as the official custodian to safeguard the remaining funds at FTX. Acting CEO John Ray III selected BitGo to take custody of the assets of the crypto exchange for the duration of the bankruptcy proceedings.

BitGo custody services

BitGo is one of the major players within 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 others.

As well as custody services, BitGo offers trading, staking, wallet services, portfolio management, and Bitcoin settlement. Further, it has custody of roughly 30% of all crypto held by centralized exchanges.

It also has custody of the Mt. Gox Bitcoin, which was hacked in 2014, ceased trading, and filed for bankruptcy. Creditors selected BitGo as the sole custodian of Mt. Gox assets. The Bitcoins are being held on behalf of customers who had their Bitcoin locked into the exchange, a similar situation to the one currently ongoing at FTX.

BitGo’s Head of Marketing, Ping Chen, spoke exclusively to CryptoSlate regarding the status of the crypto custodian. Amid widespread fear, uncertainty, and doubt in the crypto industry, BitGo

Chen was incredibly proud of what BitGo has achieved, commenting that “we’ve done everything right” and “I’m so proud to be here.” She also noted that BitGo is “one of the few regulated independent custodians.”

The company also has a ‘qualified custody’ license meaning that client assets are “bankruptcy remote.” Chen remarked, “even if BitGo burns to the ground…we operate like a bank… it is never comingled and never moved unless you, as the owner, determine where it goes.”

Not all custody is created equal.

BitGo is licensed in South Dakota, New York, Switzerland, and Germany, and, as Chen confirmed, “because we have a license, it is audited.”

“Not all custody is created equal. There’s not another peer that is doing what we’re doing right now.”

Chen remarked that “we are one of the most secure and reliable custodians for any institution” due to the qualified custodian status, multiple licenses, diligent internal risk management, and a lack of “conflict of interest.”

In a further seal of approval, BitGo is the custodian for wallets in El Salvador and has recently confirmed a partnership with Nike in relation to its new NFT initiative.

Talking about the current market climate, Chen asserted…

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