Alameda tried to redeem 3,000 wBTC days before bankruptcy: BitGo CEO
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Mike Belshe, the CEO of digital asset custodian BitGo has confirmed that Alameda Research attempted to redeem 3,000 Wrapped Bitcoin (wBTC) in the days before FTX’s bankruptcy filing on Nov. 11.
During a Dec. 14 Twitter Spaces
wBTC is a tokenized version of BTC, which can be redeemed for BTC when it is sent to a burn address which triggers the release of BTC. The conversion is made at a 1:1 ratio.
The tokenization of wrapped-Bitcoin enables Bitcoin holders to interact with Ethereum-based smart contracts and decentralized applications.
Bitgo co-developed wBTC in 2019 alongside blockchain interoperability protocol Ren and multi-chain liquidity platform Kyber. wBTC is also managed by the decentralized autonomous organization wBTC DAO, which comprises over 30 members.
The wBTC dashboard currently shows that BitGo now holds 202,255 BTC in custody against 199,238 wBTC in circulation, amounting to an overcollateralization rate of 101.51%.
