- The crypto exchange is pursuing Bybit and its affiliates for $953 million withdrawn before bankruptcy.
- Bybit’s Mirana allegedly utilized ‘VIP’ benefits to withdraw assets before FTX collapsed.
FTX has sued Bybit Fintech and its affiliates to reclaim a staggering $953 million. This move is part of FTX’s ongoing efforts to recover funds disbursed before filing for Chapter 11 in November 2022. The lawsuit alleges that Bybit’s investment arm, Mirana, withdrew substantial assets just before FTX’s collapse.
According to a report by The Business Times, FTX’s bankruptcy advisers filed a lawsuit in a Delaware court on November 10, 2023, targeting Bybit Fintech and its associated entities, including Mirana and crypto trading firm Time Research.
The complaint revolves around Mirana’s purported VIP privileges, which allegedly facilitated the withdrawal of approximately $953 million in cash and digital assets from Sam Bankman-Fried’s cryptocurrency exchange just before it went bankrupt.
The lawsuit further contends that Mirana exerted pressure on FTX employees to expedite its withdrawal requests, causing delays for regular customers attempting to retrieve their funds from the collapsing platform.
Among the staggering figures, more than $327 million is attributed to Mirana’s withdrawals during a critical period from the early morning of November 7 to November 8, 2022, when FTX temporarily halted withdrawals.
See Related: European Central Bank Hints At A Possible Crypto Mining Ban
FTX Might Make A Comeback, Hints SEC Chair
Meanwhile, CNBC reported that the SEC’s Chair Gary Gensler has hinted at the potential revival of beleaguered crypto exchange FTX under new leadership.
This comes amidst reports of the New York Stock Exchange’s former President, Tom Farley, being among the contenders seeking to acquire the remnants of FTX. Gensler has advised potential leaders eying the revival of the exchange to do it within the law.
Gensler, speaking on the sidelines of DC Fintech Week, stressed the necessity for building trust with investors and transparent disclosures in any attempt to restart FTX. Recently, FTX’s former CEO, Sam Bankman-Fried, was declared guilty of fraud and money laundering charges.
