FTX has filed a lawsuit against Bybit and others in an effort to recover the almost $1 billion in assets that were lost prior to the company’s bankruptcy.
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FTX’s bankruptcy counsel has filed a complaint against Bybit Fintech and two of its affiliates, marking a significant legal milestone in the case.
The lawsuit, filed in a Delaware court, seeks to recover $953 million in assets and digital monies that were purportedly removed from FTX before the company filed for Chapter 11 bankruptcy a year ago.
Bybit investment subsidiary Mirana Corp. reportedly used “VIP” credentials to remove a large sum of money from the failing FTX exchange in the months leading up to its collapse in November 2022. While regular customers of FTX.com had to wait for their withdrawals, Mirana allegedly put pressure on FTX employees to speed up its own requests.
In addition to the FTX withdrawals, the complaint names a high-ranking Mirana official and other Singaporean citizens as defendants. The new management at FTX is taking legal action like this as part of a larger plan to recover money that was spent before the company filed for Chapter 11 bankruptcy protection in November of last year.
This case follows a difficult time for FTX. Before the FTX platform went down, the firm and its creditors had filed for bankruptcy in the Delaware bankruptcy court in the United States to sell trust assets worth around $744 million. Grayscale and Bitwise money were pooled together to form these trust assets.
In a court filing, the debtors recommended selling or transferring these assets so that they would be ready to make payments to creditors in U.S. dollars. This would give them the freedom to liquidate the trust assets whenever they saw fit.
This lawsuit against Bybit is only one piece of a much wider plan to cure FTX’s bankruptcy problems and pay back its debtors.