FTX Bankruptcy Update 740Million Recover

The company tasked with locking down assets of the failed cryptocurrency exchange FTX Trading said it has recovered $740 million in assets so far, a fraction of the potential billions of dollars likely missing from FTX's coffers.

Cryptocurrency custodial company BitGo disclosed the figure on Wednesday in court filings. FTX hired BitGo hours after the company declared bankruptcy earlier this month.

The biggest worry for many of FTX's customers is if they'll ever see the money, they invested on the platform again. Experts told CBS MoneyWatch that customers will likely have to wait years to get their money back, while many may never recover the funds.

FTX failed after its founder and former CEO, Sam Bankman-Fried, and his lieutenants used customer assets to make bets in Bankman-Fried's trading firm, Alameda Research. The $740 million figure is from Nov. 16, and since then additional assets have steadily been recovered.

The crypto world has been shaken by FTX's bankruptcy as it watched one of the largest exchanges crumble in about a week. The  company and Bankman-Fried are being investigated in the U.S. and abroad for possible securities violations. Securities regulators in the Bahamas — where FTX is based — seized some of the company's assets days after FTX filed for bankruptcy in the U.S

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