{"id":97939,"date":"2024-10-27T18:54:33","date_gmt":"2024-10-27T22:54:33","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=97939"},"modified":"2024-10-27T18:54:43","modified_gmt":"2024-10-27T22:54:43","slug":"ftx-settles-228-million-lawsuit-with-bybit","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ftx-settles-228-million-lawsuit-with-bybit\/","title":{"rendered":"FTX settles $228 million lawsuit with Bybit"},"content":{"rendered":"\n

FTX's bankruptcy estate settled with Bybit on October 24<\/a> to resolve a 2023 lawsuit seeking funds to repay clients and creditors.<\/p>\n\n\n\n

\"FTX
FTX settles $228 million lawsuit with Bybit<\/figcaption><\/figure>\n\n\n\n

The FTX bankruptcy estate reached an agreement with the Bybit exchange in a legal document on October 24 to settle a lawsuit it initially launched in 2023. The FTX estate brought the case to recover funds to compensate former clients and creditors.<\/p>\n\n\n\n

As stated in the legal document, the settlement agreement will make it possible for FTX to sell about $53 million worth of BIT tokens<\/a> to Mirana Corp., which is an investment branch of the Bybit exchange. <\/p>\n\n\n\n

Additionally, Bybit will allow FTX to withdraw $175 million worth of digital assets. The attorneys for FTX pointed out that even though their allegations have some validity, continuing the litigation would be a burdensome process. <\/p>\n\n\n\n

\n

“Plaintiffs\u2019 claims for turnover, violations of the automatic stay, and fraudulent and preferential transfers are disputed, carry some degree of risk, and in any event would be time-consuming and expensive to further litigate.”<\/p>\n<\/blockquote>\n\n\n\n

A court still needs to approve the settlement agreement, and the two sides have scheduled a hearing to ratify it for November 20, 2024, at 2:00 p.m. Eastern time. They initially filed the lawsuit against Bybit and Mirana in November 2023, alleging that the entities used “VIP” access and a close relationship with FTX executives to preemptively withdraw approximately $327 million in digital assets and cash immediately prior to the final collapse of it. <\/p>\n\n\n\n

\"\"
FTX and Bybit settlement motion. Source: Bloomberg Law<\/figcaption><\/figure>\n\n\n\n

FTX initially filed the lawsuit for a total of one billion dollars. The FTX bankruptcy estate's attorneys claimed that the team granted priority withdrawal privileges to Mirana and other individuals during the early stages of the collapse. <\/p>\n\n\n\n

A database recorded these privileges.In the course of the lengthy bankruptcy processes that lasted for years, the FTX estate and the legal counsel for the former exchange were required to navigate a number of legal challenges, including the litigation that occurred against Bybit.<\/p>\n\n\n\n

After Judge John Dorsey gave his approval to the restructuring plan for FTX on October 7, 2024, investors decided to voluntarily abandon their case against Sullivan & Cromwell, the law firm that had represented it in a number of transactions while the business was still in operation.<\/p>\n\n\n\n

A group of companies that owed money to FTX accused the law firm of knowing about and participating in the FTX scam \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>while simultaneously reaping financial benefits from continuing to serve as legal counsel for the corporation.<\/p>\n","protected":false},"excerpt":{"rendered":"

FTX’s bankruptcy estate settled with Bybit on October 24 to resolve a 2023 lawsuit seeking funds to repay clients and creditors. The FTX bankruptcy estate reached an agreement with the Bybit exchange in a legal document on October 24 to settle a lawsuit it initially launched in 2023. The FTX estate brought the case to […]<\/p>\n","protected":false},"author":62,"featured_media":97947,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[662,778,1727],"class_list":["post-97939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bybit","tag-ftx","tag-lawsuit"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/287470d4ef24498cae7c7c310c13c081-1.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/97939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=97939"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/97939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/97947"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=97939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=97939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=97939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}