Bitcoin Spikes To $19,800 Price After FTX Asset Recovery

Bitcoin reclaimed $19,800 Friday afternoon to a reach new one-month high after eclipsing $19,000 on Thursday. The rise came after attorneys for bankrupt cryptocurrency exchange FTX announced they recovered $5 billion in liquid assets. Ethereum, Binance Coin and Dogecoin also rose as the crypto markets shifted higher Thursday following the announcement from the failed crypto exchange.

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Bitcoin climbed 5% to $19,800 Friday and peaked at $19,853 in the afternoon. The top crypto jumped 7% on Thursday to briefly reclaim its $19,000 level by the afternoon, but dipped back to $18,850 after the stock market closed.

Bitcoin Price Climbs, FTX Assets Recovered

During a Wednesday court hearing, FTX attorneys overseeing the bankruptcy proceedings announced they had recovered $5 billion in cash, digital and other liquid assets. The assets may be used to help repay the crypto exchange’s 9 million creditors. The total owed to creditors is still unclear, but initial bankruptcy filings estimated the amount between $1 billion and $10 billion.

On Thursday, former FTX CEO Sam Bankman-Fried detailed his account of the crypto exchange’s insolvency in a lengthy Substack post. “I didn’t steal funds, and I certainly didn’t stash billions away. “Nearly all of my assets were and still are utilizable to backstop FTX customers,” he wrote.

Bankman-Fried claims FTX US, the exchange’s American outfit, held $352 million in cash  beyond customer balances on its sheet when he stepped down.  SBF continues to claim that FTX US is, and always has been, solvent. And, “even now, I believe that if FTX International were to reboot, there would be a real possibility of customers being made substantially whole.”

Overall, Bankman-Fried believes (FTX sister crypto exchange) Alameda borrowed $8 billion in 2021 with only $7 billion in liquidity on hand and failed to sufficiently hedge exposure as broader crashes hit the market. However, he still blames Binance CEO Changpeng Zhao for “an extreme, quick, targeted crash,” which made Alameda insolvent and then spread to FTX. Still, SBF didn’t address…

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