BitGo Security Rejected Alameda's Request
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An editor at Coincrop
15 Dec 2022 | 3 min read
itGo rejected Alameda's endeavour to recover 3,000 WBTC. Mike Belshe, BitGo's CEO divulged that their refusal of the request was due to the failure of Alameda's representative in passing through their rigorous security verification process.
On December 14th, BitGo CEO Mike Belshe revealed in a Twitter space that the corporation had denied Alameda Research's request to redeem 3,000 Wrapped Bitcoin (WBTC) just days before its insolvency.
According to Belshe, BitGo denied the request as the representative from Alameda that reached out failed their security verification. He highlighted that they were already familiar with all of WBTC's corporate owners and this particular person was a stranger to them. Therefore, it naturally followed for them not to accept his proposal.
The individual was also unaware of the burn addresses, which is where the WBTC had been directed before its release for supporting BTC. Consequently, BitGo paused the process to acquire clarifications from the trading company. "We held it until we got a response on these matters and then Alameda went bankrupt," he further noted.
According to the Onchain data, Alameda initiated a redemption process on Nov. 9th, two days before FTX declared bankruptcy. Consequently, 3000 WBTC have already been sent to the burn address related with this move yet BitGo needs to authorize it in order for it to be executed and completed successfully.
Though Belshe exposed the data to highlight BitGo's security, it also demonstrated FTX and Alameda's desperate attempts to restore liquidity in the final days prior to the exchange.
MikeAn editor at Coincrop
Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.
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