FTX Files Lawsuit Against Bybt, Seeks to Recover Almost $1B
- FTX filed a lawsuit against digital asset trading platform Bybit Fintech Ltd. on November 10.
- The firm claims that Bybit withdrew funds prior to the exchange’s collapse on November 11, 2022.
- It states that Bybit’s investment arm, Mirana, leveraged VIP access to withdraw funds as customers waited.
- Bybit transferred roughly $953M million, which includes $327M which Mirana allegedly withdrew between Nov. 7 and 8, 2022.
Bankrupt crypto exchange FTX has filed a lawsuit against Bybit Fintech Ltd., a cryptocurrency exchange founded in 2018 and headquartered in Dubai, UAE. The new management responsible for restructuring the firm seeks to recover close to $1 billion from the digital asset trading platform. The lawsuit comes at a time when the exchange seeks to restart operations in the coming months.
As per a report from Bloomberg on November 11, FTX advisors claim that ByBit withdrew all funds just before the crypto exchange filed for Chapter 11 bankruptcy last year in November. The legal action was taken in a Delaware court on Friday, November 10, wherein the management claimed that Bybit’s investment arm, Mirana Corp., enjoyed exclusive “VIP” benefits that were not available to most customers of the digital asset trading platform.
Additionally, Mirana is accused of leveraging the VIP features to withdraw its assets prior to the bankruptcy of FTX. The complaint claims that the investment arm forced the exchange’s employees to transfer funds worth roughly $953 million. This also includes more than $327 million that Mirana allegedly withdrew from the platform between the early morning of Nov. 7 and Nov. 8 2022.
The lawsuit identifies Bybit Fintech Ltd., Mirana, and a related crypto trading entity called Time Research Ltd. The defendants also include a Mirana executive and Singaporean residents who, as per the lawsuit, either gained benefits or played a role in the FTX withdrawals that are under scrutiny in the bankruptcy case.
It is crucial to note that Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), has hinted he would be open to a rebooted FTX, provided the new management follows regulations. Fintech startup Figure Technologies, crypto VC firm Proof Group, and Tom Farley, a former president of the New York Stock Exchange, have placed their bids to buy the bankrupt digital asset trading platform.
As reported earlier by BitcoinWisdom, FTX founder Sam Bankman-Fried has been found guilty by the jury on all seven counts he was accused of. He will be returning to court on March 28, 2024, for his official sentencing. Mark Cohen, the lawyer representing SBF, said that his client maintains his innocence.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
