FTX drops its lawsuit against Bybit and returns assets worth $175 million
FTX drops its lawsuit against Bybit and returns assets worth $175 million
FTX has dismissed its lawsuit against Bybit’s parent company, Bybit Fintech Ltd., and its affiliates as part of a $225 million legal settlement.
The agreement enables FTX to recover up to $175 million in assets from Bybit and allows it to sell tokens worth over $50 million to Bybit’s investment division, originally owned by Mirana.
The lawsuit, filed nearly a year ago, alleged that Mirana abused VIP privileges by withdrawing $327 million from FTX accounts while other clients faced restrictions. FTX has now withdrawn its claims.
"The settlement allows debtors to secure substantial recoveries for their stakeholders, avoiding the costs, uncertainty, and burdens of ongoing litigation and potential enforcement risks overseas," FTX stated.
The FTX-Bybit settlement is awaiting approval from U.S. Bankruptcy Judge John Dorsey, with a hearing scheduled for November 20, 2024. If approved, the agreement will significantly contribute to the asset recovery process for FTX creditors.
As is known, the crypto exchange FTX has a number of unresolved disputes with other market participants, which could impact the value of certain cryptocurrencies.
