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FTX Settles $228M Lawsuit with Bybit and Mirana

FTX's settlement with Bybit marks a pivotal step in asset recovery amid ongoing bankruptcy proceedings.

1 min 15 sec10 days ago

Highlights:

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FTX to recover $175M in cryptocurrencies.

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Settlement includes sale of $53M in BIT tokens.

FTX Settles $228M Lawsuit with Bybit and Mirana

FTX, the bankrupt cryptocurrency exchange, has reached a significant $228 million settlement with Bybit and its investment arm, Mirana Corp. This agreement, announced in an October 24 court filing, is a crucial step in FTX's ongoing efforts to recover funds for its creditors amid its bankruptcy proceedings.

 

 

Under the terms of the settlement, FTX will reclaim approximately $175 million in digital assets held on Bybit's platform. Additionally, it will sell around $53 million worth of BIT tokens through Mirana. This settlement aims to address the losses incurred by FTX's customers and creditors following the exchange's collapse in late 2022.

 

The lawsuit, initiated in November 2023, accused Bybit of exploiting a "VIP" relationship with FTX executives to withdraw $327 million in assets just before FTX halted withdrawals for other users. FTX's legal team acknowledged that while they believed their claims had merit, settling was more advantageous than engaging in prolonged and costly litigation.

 

 

A court hearing is scheduled for November 20, 2024, to finalize the agreement. If approved, this settlement will significantly bolster FTX's efforts to repay creditors and streamline its bankruptcy resolution process. The case against Bybit is part of a broader strategy by FTX to recover assets and provide financial relief to those affected by its downfall.

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