FTX Settles Lawsuit with Bybit, Recovering $228 Million for Creditor Repayments
FTX has reached a settlement to dismiss its lawsuit against Bybit, its executives, and investment firm Mirana, enabling the troubled exchange to recover approximately $228 million.
This amount is intended to assist FTX in repaying its creditors in the near future.
According to a recent bankruptcy court filing, the involved parties engaged in extensive negotiations and ultimately arrived at a comprehensive settlement. As part of this agreement, FTX will retrieve $175 million in cryptocurrencies stored in Bybit accounts and liquidate over 105 million BIT tokens held by Mirana, valued at around $52.7 million.
Furthermore, defendants who withdrew funds from FTX prior to its bankruptcy will still have the option to reclaim 75% of their account balances as of the petition date. FTX’s filing indicated that the settlement would allow them to recover nearly all they aimed to retrieve.
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The lawsuit, initiated last November, accused Bybit of exploiting its “VIP” access to withdraw substantial amounts of cash and digital assets shortly before FTX’s collapse in 2022. FTX also alleged that Bybit impeded the estate from accessing its assets on their platform, effectively holding them “hostage.”
Under the leadership of bankruptcy expert John J. Ray III, FTX announced that over 94% of its creditors supported the company’s reorganization plan, which was recently approved by the District of Delaware Bankruptcy Court. This plan aims to reimburse 98% of creditors with at least 118% of their claimed value in cash.