BitGo Refused to Unwind $50 Million in Wrapped Bitcoin for Alameda

Dec 15,2022
KingData News: Digital asset custodian BitGo refused to allow Alameda Research to unwind $50 million worth of wrapped bitcoin days before the latter firm went into bankruptcy, BitGo CEO Mike Belshe said today in a Twitter Spaces hosted by crypto MakerDAO delegate and founder of Blec Report Chris Blec. BitGo is the custodian for WBTC, a tokenized version of bitcoin that can be deployed on the Ethereum network. Belshe said that someone from Alameda contacted BitGo about unwrapping 3,000 WBTC ($50 million) to get back bitcoin days before the Nov. 11 bankruptcy filing. He noted that the redemption request was unusual because it came from an Alameda representative that BitGo had not dealt with previously.
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.
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