FTX seeks recovery from Bybit in court
FTX seeks recovery from Bybit in court
FTX is suing Bybit to recover approximately $953 million in cash and digital assets.
In its lawsuit against Bybit Fintech Ltd. and two subsidiaries, FTX's bankruptcy legal advisers say Mirana Corp., Bybit's investment arm, used its VIP status to withdraw most of its assets from the platform shortly before it collapsed in November 2022.
As Bloomberg reports, advisors claim that Mirana pressured FTX employees to speed up the withdrawals. As a result of such actions, Mirana withdrew more than $327 million from FTX between the early morning hours of November 7 and November 8, 2022, which coincided with the time the FTX exchange suspended withdrawals.
It is worth noting that Bybit Fintech Ltd., its subsidiaries Mirana Corp. and Time Research Ltd., and senior executives are named as primary defendants in the lawsuit.
In addition, the claim against Bybit is the latest lawsuit filed by FTX's new management to recover funds paid before the company filed for Chapter 11 bankruptcy protection last November.
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