Originally published on: October 27, 2024
In a groundbreaking legal development, Bybit has agreed to a $228 million settlement with the FTX bankruptcy estate. This settlement comes after a lawsuit filed in 2023 by FTX seeking to recover funds owed to former customers and creditors.
The terms of the settlement include Bybit allowing FTX to withdraw $175 million in digital assets while selling $53 million in BIT tokens to Mirana Corp, an investment division of the Bybit exchange. While FTX believes its claims are valid, both parties have opted for a settlement to avoid prolonged litigation.
The agreement is subject to court approval, with a hearing scheduled for Nov. 20 at 2 PM Eastern Time to finalize the deal. This resolution marks a significant step in the ongoing legal battles faced by FTX and its stakeholders.
Previously, FTX had filed a $1 billion lawsuit against Bybit and Mirana, accusing them of misappropriating funds before FTX’s collapse. The lawsuit detailed how VIP access and close ties with FTX executives enabled Bybit to withdraw assets before the company folded.
The settlement with Bybit is a crucial milestone in the complex bankruptcy proceedings surrounding FTX. Following the recent approval of the FTX reorganization plan by Judge John Dorsey, stakeholders are gradually finding closure in their legal disputes.
As the crypto landscape continues to evolve, legal battles like the one between FTX and Bybit underscore the importance of regulatory compliance and transparency in the industry. Stay informed about the latest developments in crypto laws and guidelines by subscribing to the Law Decoded newsletter today. Arm yourself with the knowledge needed to navigate the crypto world responsibly and strategically.
