In a recently disclosed legal document on October 24th, the FTX bankruptcy estate revealed a settlement agreement worth $228 million with the Bybit exchange. The estate’s initial lawsuit against Bybit, filed in 2023, aimed to recover funds owed to creditors and former clients.
According to the filing, FTX will have the opportunity to sell $53 million worth of BIT tokens to Mirana Corp, an investment arm of Bybit. Additionally, FTX will be able to withdraw $175 million worth of digital assets from Bybit as part of the settlement. FTX’s legal team believes that pursuing the matter in court would be excessively burdensome, even if their allegations are valid.
However, the court’s acceptance of the settlement agreement is still pending. Both parties have scheduled a hearing on November 20, 2024, to finalize the terms.
FTX initially sued Bybit and Mirana for $1 billion in November 2023. The lawsuit claimed that these entities had prematurely withdrawn approximately $327 million worth of digital assets and cash, utilizing their “VIP” access and close relationship with FTX executives, just before FTX’s ultimate collapse.
Attorneys representing the FTX bankruptcy estate stated that during the early stages of the collapse, Mirana and others were granted preferential withdrawal rights by the FTX team. These privileges were documented in a database.
The lengthy bankruptcy proceedings were marred by legal disputes, including the litigation against Bybit, which the FTX estate and the former exchange’s legal counsel had to navigate.
Furthermore, investors in FTX voluntarily dropped their complaint against Sullivan & Cromwell, the law firm that had represented FTX in various transactions during its operation, after Judge John Dorsey approved the restructuring plan.
In other crypto news, Emory University has recently invested over $15 million in the Grayscale Bitcoin Mini ETF.
