FTX’s bankrupt managers have filed a lawsuit against Bybit and two other entities while pursuing the recovery of $953 million in assets withdrawn before the collapse.
In this recent development, the bankruptcy trustees filed a lawsuit against Bybit and its investment arm, Mirana Corp, regarding alleged coercive conduct to prioritize the withdrawal of up to $953 million before the FTX exchange’s collapse last year.
The lawsuit claims that Bybit used its control over FTX Group’s assets as leverage to attempt to force FTX.com to advance Mirana to the front of the withdrawal queue. Bybit reportedly seized FTX Group’s assets held on the Bybit exchange and refused to release them until Mirana could complete the full withdrawal of its FTX.com account balance.
The primary goal of this lawsuit is to recover the approximately $953 million in assets that Mirana withdrew from FTX, including over $327 million believed to have been withdrawn from November 7th to 8th last year. Additionally, the lawsuit involves another cryptocurrency trading company, Time Research Ltd, and a director of Mirana, suggesting that some Singaporean residents may have benefited from these withdrawals.
This lawsuit against Bybit is part of FTX’s effort to recover funds withdrawn in the months leading up to the company’s collapse, allowing for equitable distribution among all victims. Since the bankruptcy process began, FTX has already recovered $7 billion worth of assets, including cryptocurrencies.
FTX has also initiated several other lawsuits, including one against former CEOs like Sam Bankman-Fried, Caroline Ellison, Gary Wang, and Nishad Singh, as well as various companies that received funds from the exchange. Meanwhile, FTX Estate is working to maximize its cryptocurrency holdings by transferring over $300 million worth of cryptocurrencies, including Solana and Ethereum, to exchanges since November 8th.
On another note, one year after the FTX empire’s collapse, the price of Solana (SOL) has seen impressive growth, with SOL recently surpassing the $61 mark. Most recently, the former SEC Chairman has given the green light for FTX to resume operations, leading to a significant increase in the FTT token’s price.