Regarding the recent incidents of FTX and Cryptocurrency market volatility, Daniel Vogel, the CEO & Co-Founder of Bitso made a following statement.
While we are all trying to process what is happening this week with trust, transparency and risk management in the cryptocurrency industry, I would like to share with you my thoughts on the current market situation as well as what we at Bitso are doing to ensure the safety of our operations and of our clients’ funds.
We founded Bitso in 2014 after the collapse of Mt. Gox, and as a result, keeping our clients’ funds safe is at the core of our DNA. We have sacrificed faster growth to prioritize security, a decision that comes with trade-offs, but one that I do not regret. Our DNA and the values of our company allow me to say today that all of our clients’ funds are in our custody and safe from any liquidity or credit risk, even if we were to see a continuous spread in the industry.
We have an 8-year reputation for keeping our clients’ funds safe. Over time we have built technology, processes and strategies to operate in a safe, reliable and transparent manner. When the company started, there was no regulatory clarity or licenses for the crypto space. However, we decided to self-regulate following best practices. In 2018 we became one of the few companies in the world and the first in Latin America to obtain a crypto license for custody and trading. You can find more details of our license here.
Today, we develop an end-to-end regulated operation where we have different licenses in each of the jurisdictions where we serve clients. All our licenses involve constant scrutiny by different regulators and third parties around the world in the form of audits.
We have never done anything with our clients’ funds unless explicitly requested. This is the case with our income generation product, Bitso+, where we take our risk management very seriously. Our strategy focuses on evaluating market conditions, our partners and making the necessary decisions to, once again, maintain the safety of our clients’ funds. Aware of fluid market conditions, we currently hold 100% of our clients’ Bitso+ funds in Bitso. Therefore, 0% of our clients’ funds have exposure, directly or indirectly, to FTX/Alameda or FTT.
Finally, to provide additional transparency to you, our clients, all of our funds are stored in multisig accounts or via multipart calculation. We run a three-tier system consisting of hot, warm and cold wallets, and keys are geographically distributed across different jurisdictions.
This is a difficult and sad time for the industry, and especially for those directly affected by the FTX breach. As we have done in the past, we advocate that all companies in the industry lead by example and be good citizens of the crypto revolution.
At Bitso we will continue to set industry standards in terms of regulation, transparency and risk management and we are committed to continuing to do everything in our power to protect our customers.
Please click "Introduction of Bitso", if you want to know the details and the company information of Bitso.