FTX Exchange Files Lawsuit Against ByBit
The insolvent FTX exchange has filed a lawsuit against rival crypto exchange ByBit, alleging that ByBit’s investment arm, Mirana, used special privileges to withdraw funds during FTX’s insolvency challenges. According to the filing, Mirana had an account with FTX.com holding hundreds of millions of dollars and allegedly received VIP treatment from FTX.com.
Allegations Of Special Treatment
FTX’s bankruptcy advisers accused Mirana of utilizing “special VIP privileges” to facilitate their withdrawals during the period when FTX was experiencing insolvency challenges. The filing stated that Mirana had achieved withdrawals totaling $838 million from FTX, with $500 million withdrawn during the final days of FTX’s collapse and the remaining $327 million allegedly transferred through fraudulent means leveraging ByBit’s VIP privileges.
FTX Accuses ByBit Of Employee Coercion For Withdrawals
In the lawsuit against ByBit, FTX claimed that ByBit had used unethical tactics to withdraw funds from the insolvent crypto exchange. FTX also revealed that Mirana had used its control over FTX Group by seizing FTX’s assets on the exchange in an attempt to be first in line to complete their withdrawal process and clear out all the funds in their FTX.com account.
Hot Take
The allegations made by FTX against ByBit are serious and could have significant implications for both exchanges. It will be interesting to see how this lawsuit unfolds and what impact it may have on the wider cryptocurrency industry.
By
By
By
By