FTX Takes Legal Action, Sues Bybit to Recover 953 Million USD in Assets

FTX vs Bybit

The organization taking over FTX has decided to sue Bybit to reclaim the amount of 953 million USD during the days when this platform went bankrupt.

FTX Exchange has filed a lawsuit against Bybit, along with its two subsidiaries, Mirana Ventures and Time Research, to recover the amount of 953 million USD in fiat and crypto that was withdrawn from the platform in the days leading to the collapse of FTX.

The lawsuit alleges that Bybit’s investment fund, Mirana Ventures, had VIP privileges on FTX and used them to withdraw a significant amount of money from FTX before the exchange collapsed. According to the claims, Mirana exerted pressure on FTX staff to prioritize the withdrawal transactions ahead of other regular users.

The amount that FTX is seeking to recover is up to 953 million USD, with Mirana Ventures withdrawing 327 million USD between November 7th and November 8th, 2022. However, the exchange notes that asset prices are calculated as of November 1st, 2022, and will be updated during the legal proceedings.

A year after declaring bankruptcy, FTX is still in the process of asset recovery to increase the amount available for compensation to its customers. According to the announced plan, the compensation process will return up to 90% of the requested value to FTX users, provided it is approved by the court before Q2/2024.

As of November 8, 2023, FTX has transferred over 300 million USD worth of assets to CEX exchanges for liquidation. This follows the court’s approval of the proposal to sell 3.4 billion USD worth of crypto in September.

FTX Assets

Recently, the exchange has also sought court permission to sell 744 million USD worth of crypto trust shares from Grayscale and Bitwise.

Meanwhile, several organizations have expressed interest in acquiring the entire FTX to relaunch the exchange, and the SEC Chairman has indicated the possibility of approval.

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