Cryptocurrency exchange FTX has concluded a year-long legal process against Bybit by agreeing on a $228 million settlement. This move strengthens FTX's position in retrieving assets to pay back former customers and creditors.
From $953 Million to $228 Million
The original lawsuit, initiated in late 2023, sought to reclaim approximately $953 million from Bybit. FTX accused Bybit's investment arm, Mirana, of receiving preferential treatment, which allowed it to withdraw nearly $500 million just before withdrawals were halted.
Implications of the Settlement
The settlement allows FTX to reclaim $175 million in cryptocurrencies from Bybit accounts and plan the sale of over 105 million BIT tokens held by Mirana, valued at around $52.7 million. Additionally, customers who withdrew funds from FTX before its bankruptcy will be eligible to claim up to 75% of their balance as of the petition date.
Legal Complexities
In parallel court proceedings, the settlement with Bybit paves the way for confirming Genesis's reorganization plan. FTX's original claims against Genesis amounted to $3.88 billion, covering asset withdrawals and loan repayments. Bybit's agreement enables the company to focus on recovery despite legal uncertainties.
The settlement with Bybit marks a strategic victory for FTX, allowing for optimized asset recovery and strengthening its position in the reorganization process. This is a forward step in restoring the company's financial stability.
