Lawsuit Against Bybit
FTX’s bankruptcy managers are taking legal action against Bybit and its investment arm, Mirana Corp, in an attempt to recover $953 million in assets withdrawn before the exchange’s collapse. The lawsuit alleges that Bybit strong-armed FTX into processing these withdrawals and pressured FTX employees to facilitate them. The primary objective of the lawsuit is to recover the assets Mirana withdrew from FTX, including over $327 million allegedly withdrawn between November 7 and 8 last year.
The lawsuit also implicates another crypto trading firm, Time Research Ltd, and a Mirana executive, suggesting that some Singaporean residents may have benefited from these withdrawals.
FTX’s Asset Recovery Efforts
FTX has been working to recover funds withdrawn in the months preceding its collapse to enable an equitable distribution of assets among all victims. So far, the firm has recovered $7 billion worth of assets from various recovery endeavors. Additionally, it has filed lawsuits against former executives and several firms that received funds from it.
Meanwhile, FTX’s estate is also moving to maximize its crypto holdings by transferring over $300 million worth of crypto assets to exchanges as of November 8.
Hot Take: FTX Pursues Legal Action Against Bybit and Others
FTX’s bankruptcy managers are leaving no stone unturned in their efforts to recover funds for equitable distribution among all victims. The latest lawsuit against Bybit and other entities shows the extent of their determination to hold parties accountable for their role in asset withdrawals before FTX’s collapse. As the legal battle continues, it remains to be seen how successful these recovery efforts will be in restoring a sense of fairness and justice to those affected by FTX’s failure.
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