FTX sues Bybit to recover $953 million in assets.
11.11.2023
FTX sues Bybit to recover $953 million in assets.

FTX, undergoing bankruptcy proceedings, has filed a lawsuit against the cryptocurrency exchange Bybit to recover digital assets valued at approximately $953 million, which were withdrawn prior to the collapse of the platform managed by Sam Bankman-Fried. Additionally, the lawsuit includes West Realm Shires Services and Alameda Research.

According to the lawsuit, Bybit's investment division, Mirana, had special privileges not available to most FTX clients, and used these advantages to extract assets at a critical moment for the exchange.

It is alleged that Mirana pressured FTX employees for priority processing of their withdrawal requests, while other clients faced delays. Bybit is said to have withdrawn approximately $327 million in cryptocurrency from FTX in November 2022, despite a suspension of withdrawals.

The list of defendants also includes Bybit’s trading company — Time Research — and some managers who may have benefited from Mirana's actions or participated in their organization.

Under US bankruptcy law, FTX has the right to demand the return of assets withdrawn several months before the declaration of insolvency, to ensure equal treatment of creditors.

FTX assessed the withdrawn assets at the rates of November 1st and reserves the right to adjust the claim amount during the course of the legal proceedings. Previously, the company also filed lawsuits against Genesis, LayerZero, and other exchange-related entities for amounts ranging from $71 million to $3.9 billion, which ultimately led to settlement agreements.

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